ASHWANI KUMAR MISHRA,J. - (1.) The assessee is registered dealer under the U.P. Trade Tax Act, as well as Central Sales Tax Act and manufactures soft drinks known as Coca Cola, Fanta, Limca, Thumps Up, Rimzim and syrup etc. The dispute herein relates to the assessment year 1996-97(U.P).
(2.) The product manufactured is an excisable commodity, and according to the assessee, all such records are duly maintained. The books of account for the assessment year 1996-97 were discarded essentially on the basis of a survey conducted on 12.7.1997, in which vide exhibit-3, a register containing details of sales made was found not to be matching with the details disclosed. On sales maintained by the assessee, the assessing authority found that 7,968 containers were sold over and above the disclosed sale of commodity. In the assessment year, the assessee has disclosed sale as 8,776 containers, whereas in exhibit-3, the total containers sold are shown as 8,600. The assessing authority consequently found sale of 7,968 containers over and above the disclosed sale of the assessee. The appeal was preferred by the assessee contending that register relied upon i.e. exhibit- 3 did not belong to it and that such register i.e. exhibit-3 maintained details of sale of containers by M/s. Golden Agro Products Limited and Apex Traders Delhi etc. According to the assessee, this register was kept only with an intend to ascertain market reaction to the product manufactured by the assessee, and did not disclose the sales made by it.
(3.) The First Appellate Authority, however, tallied the details shown in exhibit-3 viz-a-viz details of sale disclosed by M/s. Golder Agro Product Limited. It was found that except for a few days, the sales made as per exhibit-3, matched the sales figures of M/s. Golder Agro Product Limited. The First Appellate Authority, considering the fact that the assessee was otherwise manufacturing an excisable commodity, accepted the defence and held that exhibit-3 could not be relied upon to reject the books of account of the assessee.;