TaxTMI 
TaxTMI 
2014 (5) TMI 572
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....law:- "1.Whether in the facts and circumstances, the deletion of estimation made for loss of Form XX and not intimated as per Rule 37(2) of the TNGST Rules and thus unaccounted for by the dealer is legally sustainable?" 2. The assessee is a registered dealer in tea, having tea plantations and a tea factory at Waynad, State of Kerala. The tea sold by the assessee in the State of Tamilnadu was produced and manufactured at their factory in the State of Kerala and the processed tea were transferred under stock transfer to the State of Tamil Nadu, supported by necessary sales tax forms, under Kerala General Sales Tax Act, particularly Form-26. While scrutinising the returns, it was found that the dealers had received Form XX Declarations, ....
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.... had been stated that though the assessee was a registered dealer in Tamil Nadu it had a Tea Garden and a Tea Factory at Waynad, State of Kerala. It had also been stated that the tea sold in the State of Tamilnadu had been produced and manufactured at the factory at Waynad and the finished products had been transferred to the State of Tamilnadu, by stock transfer. The Transfer of stock from one state to another has to be supported by necessary sales tax forms, in Kerala, particularly Form 26. 4. It had also been stated that while transporting the goods from Waynad, in the State of Kerala, through the State of Tamilnadu, it had to cross various check posts, where the genuineness of the transactions had been scrutinized. The assessee had a....
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....warding agent shall report the fact to the assessing authority or the Registering authority, as the case may be, within a week of the loss of such forms and appropriate entries shall be made in the remarks column of the concerned register, and steps had to be taken for issuing a public notice regarding the loss, destruction or theft, as the assessing authority or the registering authority may direct. 7. Accordingly, the Assessing authority had held that in the present case the dealers had not reported the loss of Form-XX Book, within a week, as prescribed by law. Further, the dealers had not submitted the Form XXIV register and its extract for the necessary verification. Hence, the objections raised by the assessee had been overruled and....
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.... was right in his estimation that the leaves had been used for the sales of tea and therefore, the order of the assessing authority cannot be said to be in correct. Aggrieved by the order of the Appellate Assistant Commissioner, the assessee had filed a further appeal before the Tamilnadu Sales Tax Appellate Tribunal (Additional Bench), Coimbatore. 9. The Tribunal had allowed the appeal stating that, even though some leaves of Form XX had been lost and that the assessee had not intimated the assessing authority about the said loss, there was no instance of any misuse of Form XX, by the assessee or by any other person. Further, there is no loss of Revenue to the Government. The Tribunal had also noted that the Assessing Authority had alre....
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....sing authority had misused the missing leaves for the sale of tea. Accordingly, the appeal filed by the asseseee had been allowed. Aggrieved by the order of the Tribunal the Revenue has preferred the present Tax Case Revision before this Court. 11. On a perusal of the order of the Tribunal it is noted that the Tribunal had pointed out that, even though the assessee is personally responsible for the loss of such forms, there was no loss of Revenue to Government, from such loss. Further, there were no good reasons shown by the Department to invoke the best of judgment assessment in determining the taxable turnover. The Tribunal had further held that there was no clinching evidence, except the circumstantial evidence, for estimating the tax....