2011 (1) TMI 1258

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....tock of tobacco, sada kimam, L.L.P., masala, sarbital, perfumes at 18.750 kgs, 50 kgs, 110 kgs, 115.50 kgs, 165 kgs and 137.700 kgs was found less than the stock recorded in the books of account. At the time of survey, the proprietor of the firm was present. No explanation with regard to the shortage in the stock was given at the time of survey. The assessing authority has estimated the value of stock at Rs. 2 lac and has estimated the suppressed turnover within the State of U.P. at Rs. 15 lacs apart from the purchases of raw materials from the unregistered dealer. Being aggrieved by the order of the assessing authority, the applicant filed appeal before the Additional Commissioner, Grade 2 (Appeal), Commercial Tax, Zone First, Varanasi.....

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....er of purchases from the unregistered dealer is unjustified. He submitted that under Notification No. KA. NI.-2-1084/XI-9 (51)/99-U.P. Act-15-48-Order-(8)-2003 dated February 25, 2003 chemicals of all kinds are liable to tax at four per cent and the Tribunal has erred in levying the tax at 32.5 per cent. The learned standing counsel relied upon the order of the Tribunal. He submitted that at the time of survey the proprietor himself was present. No explanation about shortage in the stock was given at the time of survey therefore explanation given subsequently that the stocks were lying in another room, which was not noticed, has rightly been disbelieved by the assessing authority and by the Tribunal. The value of shortage in the stock ha....

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....Tax Act has been accepted. He submitted that explanation about the shortage in the stock found at the time of survey has been given before the Sales Tax Officer (SIB) and also before the assessing authority. It was explained that the goods were lying in another room which could not be noticed at the time of survey. The said explanation has been accepted by the first appellate authority and there is no reason to dispute the same. He further submitted that the entire purchases of the raw materials were made from the registered dealer and, therefore, the estimate of turnover of purchases from the unregistered dealer is unjustified. He submitted that under Notification No. KA. NI.-2-1084/XI-9 (51)/99-U.P. Act-15-48-Order-(8)-2003 dated February....