TRICHY CAFE Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) This tax case revision is at the instance of the assessee. The assessee is conducting a vegetarian hotel and the total taxable turnover up to a sum of Rs. 18,25,000 is exempted from tax liability. The assessee disclosed a total taxable turnover of Rs. 11,35,566 for the assessment year 1991-92. While the accounts were called for and checked as well as the business places were inspected on January 27, 1993, it was noticed that,

(2.) A further inspection was also conducted on February 2, 1993 and March 23, 1993 and the records were verified with regular accounts on March 30, 1993 and March 31, 1993 relating to the assessment year 1991-92 and 1992-93. It was found that the assessee has not disclosed certain taxable turnover relating to the purchase of fuel, payment of wages to the workers, etc. Hence, notice was issued to the assessee calling for objections, but the assessee did not file any objections. Hence, finally, by the assessment order dated June 6, 1994, the total taxable turnover was arrived at Rs. 27,53,863.

(3.) On an appeal filed by the assessee before the Appellate Assistant Commissioner (CT), Erode, the total taxable turnover was fixed at Rs. 20,08,716. On a further appeal to the Sales Tax Appellate Tribunal, it was fixed at Rs. 18,84,962. The said re-fix of levy and re-determination of taxable turnover was made by adopting the following formula: