TaxTMI 
TaxTMI 
2012 (6) TMI 759
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....labar Cements has not been reflected in the returns; the books of accounts were called for and examined. On scrutiny of the books of accounts it was revealed that cement purchases from April to August 2007 totaling about Rs. 3,39,015/was suppressed from the books of accounts. In the circumstances, notice was issued contemplating best judgment assessment and after considering the objections of the dealer the proposals in the notice were confirmed. Assessment was completed making an addition of unaccounted purchase with Gross Profit estimate at the rate of 2% and a further addition OTRev.37 of 2012 : of 10% of the total turnover, including that returned and unaccounted for probable omissions and suppressions. 2. The dealer filed appeal again....
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....es below to the extent it demands levy of tax on the estimated turnover without giving input tax credit on the purchases supported with proper invoice is arbitrary and illegal? 4. The revision petitioner does not dispute the actual suppression. The plea of the revision petitioner is to the effect that the omission to account the said transaction was due to a wrong advice that, if the delivery is made directly to the ultimate consumer; no further tax has to be paid by the dealer and hence there was no reason why the same should be accounted. The said contention would go against the very concept of Value Added Tax and is only to be rejected. Further while considering the contention put forward by the dealer, the Assessing Officer has categor....
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....the cascading tax-burden and has the ultimate goal of augmenting revenue growth by making the procedure simple and more transparent. The scheme of the Act postulates self assessment under Section 21 by filing of returns as per Section 20. The system of self assessment postulates the trust reposed on the assessee promoting and ensuring compliance rather than avoidance and evasion. It provides for best judgment assessment in the context of non filing of returns or filing defective returns (Section 22) or on audit in the contingencies provided under Section 24 or while assessment of escaped turnover is made under Section 25. The input tax credit, provided by Section 11 of the Act is available in respect of a return period against the output ta....
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.... Gopal and Others (2011 (1) SCC 236) had considered whether a manufacturer was eligible to get the benefit of exemption on specified intermediate goods on the ground that the records kept by it would indicate the "intended use" and "substantial compliance" with the procedures set out under Chapter X of Central Excise Rules, 1944. The matter was referred to a Constitution Bench doubting two other judgments of the Supreme Court on the well established principle that exemption notifications call for strict interpretation so far as the eligibility is concerned. Brief facts are that clandestine manufacture of goods without applying/obtaining certificate of registration as required under the Excise Rules was detected on inspection by the preventi....
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....h those factors which are considered as essential. 8. The principle of strict construction would equally be applicable in the case of input tax credit and the procedural mandate in the provisions of Section 11 has to be necessarily satisfied. The tax sufferance proved by invoice, the quantum determinable from the books of accounts etc., are the essence of the claim for the benefit conferred by the Section in availing input tax credit. Input tax credit is in the nature of set-off of tax suffered thus ensuring the liability of the subsequent dealers only on the quantum of value addition. No dealer has a right to claim input tax credit independent of the provisions of Section 11. The set off so provided is in the nature of a concession. It is....