IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN FRIDAY, THE 25TH SEPTEMBER 2009 / 3RD ASWINA 1931 ST.Rev..No. 170 of 2009() ------------------------- TA.93/2008 of STAT ADDL.BENCH, KOTTAYAM .................... REVISION PETITIONER/RESPONDENT/REVENUE ---------------------------------------------------------- STATE OF KERALA REPRESENTED BY JOINT COMMISSINER (LAW), COMMERCIAL TAXES, ERNAKULAM. BY GOVERNMENT PLEADER SRI. MOHAMMED RAFFIQ RESPONDENT(S): APPELLANT/ASSESSEE --------------------------------- P.R.SURESH BABU, SURESH DISTRIBUTORS, VAZHICHERRY, ALAPPUZHA. ADV. DR.K.B.MUHAMED KUTTY, SENIOR ADVOCATE SRI.K.M.FIROZ THIS SALES TAX REVISION HAVING BEEN FINALLY HEARD ON 25/09/2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- S. T. Rev. No. 170 OF 2009 -------------------------------------------- Dated this the 25th day of September, 2009 O R D E R Ramachandran Nair, J. Heard Government Pleader for the petitioner and senior counsel Dr. K.B. Mohamedkutty appearing for the respondent. The decisions relied on by the Tribunal are no longer good law because a Full Bench of this Court held that once party is found to be engaged in not accounting actual purchases, addition need not be limited to actual suppression noticed, but can be done on an estimate on reasonable basis. However, senior counsel for the respondent rightly pointed out that in this case the assessee has accounted inter-State purchases, but avoided tax and therefore the Tribunal's order is tenable. However, we find that the assessee accounted the purchases under non-taxable goods without any basis. Therefore the order of the Tribunal is not tenable. Therefore we allow the revision by reversing the order of the Tribunal but direct the Officer to limit the addition to the actual suppression noticed and along with it equal amount of suppression. In other words, 2 addition to the declared turnover should be twice that of actual suppression. Revision is allowed in part as above. (C.N.RAMACHANDRAN NAIR) Judge. (V.K. MOHANAN) Judge. kk 3