TaxTMI 
TaxTMI 
2020 (2) TMI 901
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....1.2003 allowing the Appeal filed by the Revenue and enhanced the estimate turnover of the Assessee, who is engaged in the manufacture of Sodium Silicate on the basis of fuel consumption made by the Assessee. The relevant findings of the Tribunal with regard to the said issue are quoted below for ready reference. "12.Point No.2 The Assessing Officer found that to produce 1664 kgs. of Solid Sodium Silicate. Fuel gas consumed at the time of survey was 237-800 cubic Metre, that the total fuel gas consumed for the period from 1.4.91 to 31.12.91 as per accounts was 4,82,677 cubic metre and that therefore the dealers would have produced 3377521 kgs. of Solid Soidum Silicate, whereas the quantity produced as per accounts was to the extent ....
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....difference may not be viable and that therefore the estimation made by the Assessing Officer require restoration. The learned counsel for the appellants at the time of hearing argued that the case study could not be accepted as true and correct in view of the following reasons: 1. The Gas supplied to the factory will not be uniform pressure at all time. The production will not also be equal during high and low pressure period. 2.For the supply of thicker silicate liquid, additional sand is used for melting and thereby the consumption of gas will be more at the time of low pressure. 3.The raw material Soda Ash purchased are in two forms. One as power and another in Kurunai form. The consumption of gas will....
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.... failure, gas was under for the purpose of generating power etc. were not accepted by the Assessing Officer as he verified the contentions with reference to the consumption of gas and production in respect of their sister concerns which were also subjected to survey. In all the 3 sister concerns, the production for the whole year period was higher than the production achieved during the survey period. Name of the Unit Fuel Gas Consumed Sodium Sili cate Total Gas Consumed upto 31.12.91 Quantity of Sodium Silicate that should have been produced Actual Quantity produced upto 31.12.92 Difference 1.Sowbakiya lakshmi Silicate, Kuthalam. 213.79 C.M. 1496 kgs. 440639 C.M. 3083381 kgs. 3776079 kgs. (+) 69269....
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....0 STC 94. In fine, we restore the assessment on a turnover of Rs. 28,04,929/-. 2.Against the assessment order dated 13.01.1993 for the assessment period 1991-1992, the Assessing Authority made the additions to the declared turnover of the Assessee on the same basis of fuel consumption estimate on the basis of Survey Reports during the course of Survey made by the Revenue Authorities. The First Appellate Authority however granted the relief to the Assessee vide his order dated 29.11.1993 and held that in place of fuel consumption, the quantum of raw materials consumed by the Assessee viz., Soda Ash, should have been taken over for estimating the production and turnover of the Assessee and according to that calculation, the First Appellate....
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....ng the course of regular assessment proceedings. The findings of the Court in the said matter are quoted below for ready reference. "The account books of an assessee cannot be rejected on mere suspicion or conjecture unless the accounts are kept in such a way that reliance cannot be placed upon them. If the method of accounting followed by the assessee is so defective that there is a possibility of suppression and leakage, the accounts can be rejected without any further material. But, if the accounts are properly maintained with all the relevant details, it is necessary for the assessing authority to place on record some material to show that the accounts are not reliable. The fact that the consumption of electricity shown by the ....
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....enied that one of the yardsticks to estimate the production and turnover can be made in fuel consumption as well, the other factors like electricity consumption, consumption of raw materials etc. are also relevant, but it cannot be said that estimation on the basis of fuel consumption is per se liable to be rejected, particularly when the Assessee failed to establish that due to that yardstick of fuel consumption applied, it has resulted in a perverse finding by the learned Tribunal. Merely raising a defence like that the pressure of the gas/fuel supplied to the Assessee was not even at all the time etc. is not enough. No facts, figures or data with respect to such gas supplied, have been placed on the record of the Assessing Authority to u....