Case Law Details
Tirupur Sree Annapoorna Vs Tamil Nadu Sales Tax Appellate Tribunal (Madras High Court)
Madras High Court held that as taxes are the main source of income for the Government to concentrate on the welfare of the people, companies/firms/entities, which evade payment of tax are liable to be punished under criminal charges with substantial penalties.
Facts- It was submitted by the Petitioner / Hotelier that they are into hotel business for several years and for the assessment year 1995-1996, a total taxable sales turnover of Rs.52,39,203/- and Rs. 12,064/- by way of returns in Form A1 was shown in respect of Tirupur Sree Annapoorna Hotel and Sree Annapoorna Sweets as per Section 3(1) of the TNGST Act, 1959. However, the 3rd Respondent had rejected such calculation on the ground that the Registration Certificate, which was applied for Sri Annapoorna Sweets, a sister concern of Tirupur Sree Annapoorna Hotel was not accepted for registration and therefore, the 3rd Respondent reworked the taxable income and determined as Rs.66,60,363/- and Rs.14,35,123/- respectively towards the turnover for the year.
It was further submitted that aggrieved by the assessment of the 3rd Respondent, the Petitioner preferred an appeal under Section 31 of the TNGST Act, 1959 before the 2nd Respondent. The said appeal preferred by the petitioner was allowed.
Challenging the order passed by the Appellate Authority, the Revenue filed an appeal before the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Coimbatore / 1st Respondent herein. The Appellate Tribunal, without appreciating the materials placed before it and on the basis of mere surmises and conjectures, passed an order in Coimbatore Tribunal Appeal No.127/2002 dated 31.10.2006, thereby restoring the order of the Assessing Authority.
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