High Court of Judicature at Allahabad
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M/S V.K.Chemicals v. C.S.T. - SALES/TRADE TAX REVISION No. 1445 of 1991  RD-AH 2292 (2 September 2005)
SALES TAX REVISION NO.1445 Of 1991
SALES TAX REVISION NO.1446 Of 1991
M/S V.K. Chemicals, Chandausi, Moradabad. Applicant
The Commissioner, Sales Tax, U.P., Lucknow. 0pp.party
Hon'ble Rajes Kumar, J.
Present two revisions under Section 11 of U.P. Sales Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal dated 18th September, 1996 relating to the assessment year, 1985-86 under the U.P. Sales Tax Act and Central Sales Tax Act.
The applicant was engaged in the business of manufacture and sale of mentha oil and D.M.O. from mentha oil purchased from cultivators and other dealers. The books of account of the applicant have been rejected and the assessing authority has enhanced the turnover. First appeals filed by the applicant were rejected. Applicant filed second appeals before the Tribunal, which were allowed in part. The Tribunal has confirmed the rejection of the books of account, but has reduced the turnover
Heard counsel for the parties.
I have perused the order of the Tribunal and the authorities below.
The Tribunal has sustained the rejection of the books of account on the ground that the dealer has not maintained the manufacturing account as required under section 12 (2) of the Act. It has also been observed that the purchase vouchers were maintained in loose purcha, the serial numbers are not regular, and even numbers are in odd number. It has been further found that there was a difference in the return version and book version, which has not been properly explained. Looking to the facts of the case, the Tribunal has estimated the turnover. I do not find any error in the order of the Tribunal. In the case of Commissioner of Sales Tax Versus M/S Girja Shanker Awanish Kumar reported in 1997 UPTC 213, it has been held that if the manufacturing account in accordance to Section 12 (2) of the Act has not been maintained, the books of account held to be unreliable and the entries made therein are not verifiable. It has been further held that non-maintenance of manufacturing account is not a technical defect and it leads to best judgment assessment.
For the reason stated above, the order of the Tribunal is upheld.
In the result, both the revisions fail and are accordingly, dismissed.
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