established the fact that he was maintaining accounts, stock register, bill books for the purchases and sales for the pulses business, for which he was maintaining part time accountant; that the stock book could not be updated as the part time accountant went to Tirumala, however, all the sales and purchases accounted for in the chitta; that even otherwise, the irregularity of not maintaining the accounts for any short spell for valid reason was not an actionable irregularity since as per the settled legal position the accounts could not be updated, as the business on the date of inspection not commenced and he would like to rely on the decision rendered by their lordships of Hon’ble High Court of A.P., Hyderabad, reported in 1989(2) Law Summary at page 12; that there was no unauthorized stock in the business premises as all the purchases are covered by bills and vouchers; that with regard to the stocks not entered in the stock book and termed as unauthorized stock shall not be treated as unauthorized stock as there was full-proof evidence of bills and he would like to rely on the decision rendered in 1991 (1) APLJ pg 32; that the stocks held by him are well within the limits as he was entitled to held the stocks double to the stock limits prescribed for category-A cities, i.e. Tadepalligudem town declared as primary mandi. The respondent has further stated that after repealing of the Pulses, Edible Oils Storage Control Order, 1977, the business in pulses was exempted from the operation of 1982 Control order and subsequent to it the Govt, have issued the circular extending the operation of 1982 control order to the pulses, but the concurrence of Govt., of India was not obtained in this regard so as to bring it in the purview of E.C.Act, 1955, thus the above proceedings are not maintainable; that the respondents would like to rely on the decision reported in 1991(2) APLJ 52 and 1989 (2) ALT-1 (NRC) ; that the provisions of above G.O. under which the pulses included from the purview of 1982 control order were not enforceable and the same were bad for want of concurrence of Govt., of India; that storing of pulses in the authorized premises keeping the stocks accessible and maintenance of proper accounts by issuing bills for the sales and purchases made and paying commercial taxes, clearly reveals that he has no mala fide intention and the proceedings initiated against the respondent are liable to be dropped.
