1979 (2) TMI 209

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....November, 1971, and entries in the accounts regarding sales effected during the course of the day were made on a lump sum basis. Similarly no credit bills were maintained by the assessee before 16th November, 1971, and all that used to be done was that credit sales were recorded in the Kachchi Rokar directly. Apart from these considerations he took into account certain other factors with which we are not concerned in this revision. As a result of rejection of account an estimate of the turnover was made. The assessee's appeal against the order of Sales Tax Officer failed as respects to the rejection of accounts, but was successful as respects to the estimated turnover in so far as that was reduced. On a revision being filed the Revising....

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....s tax as such on sale of any goods from the purchaser shall issue cash memo or a credit memo, signed by the dealer or his servant, manager or agent to the purchaser separately the price for which goods are sold and the amount realised as tax from the purchases and shall keep a counterfoil duly signed and shall further maintain a true and correct account of all monies realized by him as tax in the prescribed manner." 4. In view of the phraseology of Section 8-A (3) it is clear that a dealer has not only to maintain his accounts as laid down in Section 12 but every registered dealer, who charges tax has to issue cash memos or credit memos as required by Section 8-A (3). In the event that it has not charged tax from the purchasers, the requ....

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....of account to be maintained by an assessee. Section 8-A (3) was incorporated in the Act in order to secure the interests of the Revenue and to safeguard against evasion of tax by erring dealers. To hold that failure to comply with Section 8-A (3) did not entitle the Sales Tax Officer to reject the accounts, would to very great extent stultify the purpose of the enactment. Thus in these circumstances the rejection of accounts of the assessee can be upheld. It becomes now necessary to consider the contention that in the type of business conducted by the assessee it was not customary to issue cash memos or credit memos, and unless a specific defect was found in the accounts as envisaged by Section 12, the rejection of account was improper. ....

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....ccounting the cash received during the day. The Bench held that ordinarily cash sale must be vouched by cash memo or entries in cash book so that the sales can be easily verified. They made an exception in case of petty dealers on the ground that making entries in the account books after counting the cash at the end of the day was a recognised system adopted by petty dealers suffice it to say that the assessee whose turnover on his own showing runs to the tune of over five lacs would not come within this category. This being so, as the assessee was not issuing any cash memo for each and individual sale nor making separate entries in the cash book for each such sale, the accounts of the assessee could be rejected even on the principle laid d....