In a tax case revision petition, the Madurai Bench of the Madras High Court dismissed the plea challenging the Sales Tax Appellate Tribunal's order regarding estimated suppression of sales tax for a plywood dealer, finding the decision based on facts with no substantial question of law.
Revision petition dismissed. No costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
T.C.(MD)No.100 of 2009
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 03.01.2024
CORAM:
THE HONOURABLE DR.JUSTICE G.JAYACHANDRAN AND THE HONOURABLE MR.JUSTICE C.KUMARAPPAN
T.C.(MD)No.100 of 2009
Tvl.Mekala M.S.P.Raja, 181-A, Goods Shed Street, Madurai.
...Petitioner
/Vs./
1.The State of Tamil Nadu, The Secretary, Sales Tax Appellate Tribunal (Addl. Bench), Commercial Taxes Buildings, Dr.Thangaraj Salai, Madurai-625 020.
2.The Commercial Tax Officer, Nethaji Road Circle, Commercial Taxes Buildings, Dr.Thangaraj Salai, Madurai-625 020.
...Respondents
PRAYER:- Revision Petition - filed under Section 38 of the TNGST Act, 1959, to revise the order of the Tamil Nadu Sales Tax Appellate Tribunal (Addl. Bench), Madurai, dated 01.02.2006 passed in Madurai Tribunal Appeal No.277 of 2005.
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T.C.(MD)No.100 of 2009
For Petitioner : Mr.R.D.Ganesan For Respondents : Mr.D.Sachikumar Additional Government Pleader
ORDER
DR.G.JAYACHANDRAN, J. AND C.KUMARAPPAN, J.
The petitioner herein is a registered dealer in plywood. In the course of inspection by the enforcement wing, suppression of sale was noticed and sales slips other than invoice were acquired during the inspection conducted on 13.11.2002. Based on the inspection report, the assessing officer found that there is a suppression of sale and estimated the suppression is Rs.12,15,686/- and levied penalty of Rs.1,80,43,322/under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as “Act” for brevity).
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T.C.(MD)No.100 of 2009
2. Being aggrieved by the order passed by the assessing officer, the dealer preferred an appeal before the Assistant Commissioner, who deleted a sum of Rs.4,76,55,100/- as against the estimated suppression of turnover of Rs.7,26,12,088/- and proportionate tax and penalty was levied. Thereby, the assessment made by the Assessing Officer partly modified.
3. The dealer went on appeal before the tribunal. The
tribunal, on considering the ground of appeal, the order of the assessing officer, appellate authority and the documents relied split the total turnover of Rs.12,15,686/- as taxable turnover and non taxable turnover and held that the suppressed turnover is only Rs.53,83,027/- and liable to pay tax of Rs.8,56,409/- and surcharge of Rs.28,787/-. Still not satisfied with the order, the assessee / dealer has preferred this tax case (revision).
4. The learned counsel appearing for the petitioner submitted that on the inspection, the team could be able to collect material only to
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T.C.(MD)No.100 of 2009
an extent of alleged suppression of sales to the tune of Rs.81,000/-. However, the assessing authority had multiplied the suppression twelve times on presumption and levied tax on the presumptive turnover, which is not supported by any document. Further though it is contended that more than Rs.45,000/- bills were scrutinized fixing the escaped assessment, there is no material placed by the department to substantiate the allegation.
5. The contention of the learned counsel appearing for the petitioner is not sustainable for the reason that these points were agitated before the first appellate authority as well as the tribunal. The facts were considered and the relevancy of materials were duly considered and the tax and surcharge payable has been duly revised and reduced.
6. For easy reference, the abstract of the relief granted by the
authorities in the first appeal and second appeal is given below:-
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T.C.(MD)No.100 of 2009
ABSTRACT OF RELIEF GRANTED IN THE APPELLATE FORUM
BEFORE THE AAC(CT), MADURAI (NORTH)
| Turnover | Tax | SC | Penalty | |
|---|---|---|---|---|
| Disputed | Rs.7,38,27,771 | 1,16,50,585 | 5,82,530 | 1,80,43,322 |
| Relief | ||||
| granted Sustained |
Rs.4,76,55,100 ------------------ Rs.2,61,72,671 |
75,40,623 -------------- 41,09,962 |
4,15,351 ----------- 1,67,179 |
1,37,82,165 -------------- 42,61,157 |
| BEFORE | THE STAT (AB), | MADURAI | ||
| Relief | ||||
| claimed Relief granted |
Rs.2,61,72,671 Rs.2,07,89,644 ------------------ |
41,09,962 32,53,553 -------------- |
1,67,179 1,38,392 ----------- |
42,61,157 ** -------------- |
| Sustained | Rs.53,83,027 ------------------ |
8,56,409 -------------- |
28,787 ----------- --- |
** ----------- |
7. This Court finds that the order of the tribunal is based on
the facts and requires no interference. Further, no substantial Question of
Law arises. Hence, this tax case (revision) is dismissed. No costs.
[G.J.J.,] & [C.K.J.,] 03.01.2024
NCC :Yes/No Index :Yes/No Internet :Yes
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T.C.(MD)No.100 of 2009
DR.G.JAYACHANDRAN, J. AND C.KUMARAPPAN, J.
sm
TO:-
Order made in T.C.(MD)No.100 of 2009
Dated: 03.01.2024
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3 issues framed by the court
Whether the High Court should interfere with the order of the Sales Tax Appellate Tribunal in a revision petition filed under Section 38 of the TNGST Act.
Whether the tribunal's finding on suppressed turnover is based on facts and requires interference.
Whether any substantial question of law arises.
2 provisions across 1 enactments
Tvl. Mekala M.S. Raja
The State of Tamil Nadu
The Secretary, Sales Tax Appellate Tribunal
The Commercial Tax Officer
Dr. Justice G. Jayachandran
C. Kumappan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
