M/S Godfrey Philips India Ltd. vs The Commissioner Of Commercial ...
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HIGH COURT OF JUDICATURE AT ALLAHABAD
 
 

?Court No. - 1
 

 
Case :- SALES/TRADE TAX REVISION No. - 220 of 2017
 

 
Revisionist :- M/S Godfrey Philips India Ltd.
 
Opposite Party :- The Commissioner Of Commercial Tax U.P. And 2 Others
 
Counsel for Revisionist :- Raghav Nayar
 
Counsel for Opposite Party :- C.S.C.
 

 
Hon'ble Piyush Agrawal,J.

Heard Sri Navin Sinha, Senior Advocate assisted by Sri Raghav Nayar, counsel for the revisionist and Sri Ravi Shanker Pandey, Standing Counsel.

The present revision has been filed against the order dated 10.2.2017 passed by Commercial Tax Tribunal, Ghaziabad in Second Appeal No. 368 of 2010 for the Assessment Year 2006-07 arising out of Entry Tax Act in which following question of law has been framed:-

"Whether the Trade Tax Tribunal is justified in confirming the impugned demand on the basis of penalty orders passed on 25.6.2007"

Learned Senior Counsel appearing for the revisionist submits that the revisionist is engaged in the business of manufacture and sale of cigarette. In the normal course of business cigarettes are being imported from outside depot and was being sold. Only because of penalty proceedings, the best judgment assessment has been made though twice survey was made on 24.4.2007 and 31.5.2007 and no adverse material was found but still the books of account have been rejected and enhancement of suppressed sale has been made to Rs. one crore which is without any basis and the same was affirmed by the Tribunal, hence the same is liable to be set aside. He prays for allowing the revision.

Per contra, learned Standing Counsel supports the order passed by the Tribunal.

After hearing learned counsel for the parties, the Court has perused the record.

Perusal of the record shows that it is admitted that the survey was conducted at the business premises of revisionist on 24.4.2007 and 31.5.2007 and no adverse material was found against the revisionist. Though only, it was found that the entry tax was not paid but still on the basis of penalty proceedings initiated against the dealer, the books of account have been rejected and best judgment assessment was made. Today, Sales/Trade Tax Revision No. 876 of 2008 filed by the revisionist against the penalty order was allowed and the penalty order was quashed, therefore, solitary ground for rejection of books of account and enhancement of turn over does not survive.

In view of the above, the order of the Tribunal cannot be sustained in the eyes of law and is hereby set aside. The disclosed turn over as well as books of account of the revisionist are accepted.

The Revision is allowed.

The question of law is answered accordingly.

Order Date :- 5.5.2022

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