Case Law Details
Subham Marbles Vs State of Odisha (Orissa High Court)
Court has emphasized that there cannot be an automatic enhancement of taxable turnover on the basis of eye estimation by the Assessing Officer. In other words, relying on the decision in Mahabir Rice Mill v. State of Orissa 1983 54 STC 218 (Ori), it was held that in the absence of any material to establish the goods found short have been sold, it is not possible to the Department to simply enhance the taxable turnover on the basis of ‘eye estimation’. Accordingly, the question framed is answered in negative i.e. in favour of the dealer and against the Department.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
05. 1. While admitting the revision petition which arises from an order dated 6th December, 2017 of the Odisha Sales Tax Tribunal, Cuttack in SA No. 425(VAT) of 2015-16, the following question of law was framed by this Court by the order dated 18th June, 2016:
“Whether in the fact and circumstances, the learned Division Bench, Odisha Sales Tax Tribunal is right in law to hold the petitioner was involved in suppression of purchase and sales, due to discrepancy of stock, when the stock taking was made approximately on eye estimation, without having any other iota of evidence of suppression of purchase and sales, on the basis of a confessional statement, which has been retracted subsequently at the stage of assessment?”
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