ASHWANI KUMAR MISHRA,J. - (1.) The revisionist is a registered dealer engaged in the business of manufacturing and sale of Pan Masala in the brand name "Rajnigandha". The product manufactured by the assessee is excisable and according to assessee all movements of stocks etc. are closely monitoring by the authorities under the Excise Act.
(2.) For the assessment year 1999-2000, the applicant declared its total turnover at Rs. 2,06,32.616.64 paise and admitted tax liability to the tune of Rs. 20,60,962.07 paise. The assessing authority rejected books of account of the applicant on the ground that the assessee had filed to maintain stock books in respect of the raw material as well as products obtained at every stock of production and thereafter proceeded to enhance the turnover so as to impose liability of tax quantified at Rs. 26,24657.50 paise. The assessee went in appeal which was allowed. The appellate authority found that the assessee had maintained the relevant stock books in respect of raw materials etc. The process of manufacturing was also examined and it was observed that the raw materials are put in a mixture in specified proportion to get the end product which is then packed and sold.
(3.) The first appellate authority further found that there was no material to show that any turnover had escaped assessment. The first appellate authority while holding that the assessee had maintained stock books in terms of Section 12(2) of the Act of 1948, has also observed that even otherwise, there is no basis to enhance the turnover. This order has been reversed in appeal preferred by revenue.;