HOTEL SUJATHA DELUXE Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS is an appeal filed under Section 22 of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the 'Act') challenging the appeal order dated 7th January, 2004 passed by the Joint Commissioner of Commercial Taxes (Appeals), Belgaum Division, Belgaum (hereinafter referred to as 'First Appellate Authority' or for short, 'FAA') in Case No. JC/AP/BG/KST/204/2002 -2003, wherein the FAA has modified the assessment order dated 6th October, 2001 concluded by the Additional Deputy Commissioner of Commercial Taxes (Assessments -II), Belgaum (for short, the 'AA') under the Act for the year ending 31 -3 -1999 (1998 -1999). The State has preferred cross appeal praying to restore the orders of the AA. The relevant facts and grounds leading to this appeal can be alluded thus:

(2.) ON the above grounds, the prayer is made to set aside the impugned appeal order and also the assessment order by deleting the estimation of sales suppression. Contrary to this, the learned State Representative reiterated the grounds of cross appeal and emphasised the fact that the processing of the seized note book has revealed unaccounted sales and the same are liable for tax as first sale. In fact, the appellant has discharged part payment of tax and the excess stock which has been purchased is during the period 27 -4 -1998 to 8 -3 -1999. It is the contention of the State in cross appeal that the stocks were not available physically in the business premises except for the recordings in the seized note book. On these grounds, the prayer is made to set aside the orders of the FAA and to restore the orders of the AA.

(3.) THE following points which arise for our consideration are: