Madras HC Upheld VAT Demand Due to Lack of Proof of Sister Concern Stock Ownership

Tvl. Jayalakshmi Traders Vs State of Tamilnadu (Madras High Court) The revision petition was filed against the order of the Tamil Nadu Sales Tax Appellate Tribunal, which had dismissed the petitioner’s appeal concerning VAT demand arising from stock discrepancies for the assessment year 2015–2016. The petitioner, a distributor of beedies in Trichy District, was subjected to an inspection by the Enforcement Wing on 12.09.2015. During inspection, actual stock was verified and compared with the books of accounts, revealing discrepancies and consequent sales suppression. Based on this, a pre-r...