1975 (11) TMI 150 - HC - VAT and Sales Tax

Summary

Issues:
1. Liability of dealer to admit tax on imported goods under C form.
2. Maintainability of appeal without depositing admitted tax.

Analysis:
The judgment by the High Court addressed the issues of liability to admit tax on imported goods under C form and the maintainability of an appeal without depositing the admitted tax. The assessee, M/s. Mangala Emporium, had filed a return for the assessment year 1967-68, showing purchases of agate stones under C form without admitting any tax liability. The Sales Tax Officer made a best judgment assessment, determining the turnover and levying tax. The appellate authority dismissed the appeal for not depositing the admitted tax as required by law. The learned Judge (Revisions) held that since no tax was admitted by the assessee before the assessing authority, the appeal was maintainable, contrary to the appellate authority's decision.

The High Court examined the proviso to section 9(1) of the U.P. Sales Tax Act, emphasizing that the admission of tax due before the assessing authority was crucial for appeal maintainability. The Court referred to the Supreme Court's decision in Kanpur Vanaspati Stores v. Commissioner of Sales Tax, emphasizing that the admission of tax before the assessing authority was pivotal. In this case, the assessee did not admit any tax due before the assessing authority, leading to the appeal's maintainability.

The Court rejected the argument that non-payment of tax must be bona fide for appeal maintainability, stating that the proviso to section 9(1) focused on factual admission before the assessing authority, not the intention or motive of the assessee. The Court highlighted the recent amendment to section 9(1) requiring proof of payment based on admitted tax in returns or proceedings. The Court concluded in favor of the assessee, answering both questions in the affirmative against the Sales Tax Commissioner. The costs were assessed to be paid by the Commissioner to the assessee, and the reference was answered in favor of the assessee.