1992 (2) TMI 334 - HC - VAT and Sales Tax

Summary

Issues: Assessment revision based on statement of clearing agent, denial of opportunity to defend, withdrawal of exemption, reduced rate for declared goods.

The judgment of the Andhra Pradesh High Court in this case dealt with multiple issues arising from the assessment revision under the Andhra Pradesh General Sales Tax Act, 1957. The petitioner, a registered dealer, contested the addition of a turnover of wheat amounting to Rs. 8,70,306 based on the statement of a clearing agent. The petitioner requested a copy of the statement but was allowed to only peruse it without objection. The Court noted that since the petitioner had the opportunity to review the statement and did not raise any objections, it was not valid to claim prejudice due to the lack of a copy.

Regarding the implication of the statement on the petitioner, the Court found that the Deputy Commissioner's order did not address the argument that the consignment mentioned by the clearing agent did not belong to the petitioner. The petitioner's failure to report the import of wheat and discrepancies in the assessment led to the addition of the amount, which the Court upheld, rejecting the petitioner's contention.

The Court also addressed the withdrawal of exemption for purchases from seven dealers deemed fictitious by the Tribunal. Despite the dealers being registered with the department, their nonexistence rendered the exemption invalid. The burden of proof regarding genuine purchases rested with the petitioner, and registration alone was insufficient to claim exemption.

Lastly, the Court dismissed the argument regarding the reduced rate for wheat as a declared good, noting that the issue was not raised before the Tribunal and could not be introduced for the first time in the High Court. Consequently, the Court found no merit in the tax revision case and dismissed the petition accordingly.