1993 (1) TMI 274 - HC - VAT and Sales Tax

Summary

Issues:
Assessment under U.P. Sales Tax Act, 1948 for the year 1983-84, reassessment proceedings under section 21 of the Act, disproportionate turnover of sale of gur, additional turnover brought to tax, validity of mandi fee payments, jurisdiction and decision-making of Sales Tax Tribunal.

Analysis:
The judgment pertains to a revision under the U.P. Sales Tax Act, 1948, concerning the assessment year 1983-84. The applicant, a partnership concern engaged in the business of kachchi arhat and sale and purchases of gur, faced reassessment proceedings under section 21 of the Act. The initial assessment accepted the account books but later discrepancies in mandi fee payments were discovered, leading to an ex parte reassessment order. The Sales Tax Officer added a significant turnover of sale of gur and other items to the tax liability based on the perceived discrepancy in the turnover reported by the assessee and the mandi fee paid. The judgment highlights the disproportionate turnover of Rs. 4,62,200 in the reassessment, which the court deemed necessary for fresh consideration by the Sales Tax Tribunal.

The crux of the dispute revolved around the payment of mandi fee on April 30, 1983, amounting to Rs. 4,166.77, with the assessee contending that it related to the preceding year. The Sales Tax Tribunal rejected the certificate of the mandi samiti provided by the assessee, citing unreliability and general observations about the yearly details of mandi fee. However, the court emphasized that the Tribunal should have sought clarification rather than dismissing the evidence arbitrarily. The judgment emphasized the judicial function of the Tribunal to consider all evidence judiciously and not ignore relevant material without valid reasons. The court found the Tribunal's decision lacking in proper consideration of the certificate and remanded the matter for fresh assessment.

In conclusion, the court set aside the Tribunal's order affirming the assessment of the additional turnover of Rs. 4,62,200 in the sale of gur and directed the Sales Tax Tribunal to reexamine the matter in light of the evidence presented. The judgment highlighted the importance of a thorough and reasoned decision-making process by the Tribunal, ensuring that all relevant evidence is duly considered. The revision was partially allowed, and the matter was remanded for fresh consideration, emphasizing the need for a just and equitable resolution in the interest of justice.