1995 (8) TMI 283 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of assessment order passed after remand.
2. Legality of tax imposition on purchases made within the State.
3. Burden of proof on the assessee to claim exemption from tax.
4. Justification for not levying interest on fresh imposition of tax.
5. Request for payment of tax in monthly installments.

Analysis:
1. The applicant challenged the assessment order passed after remand, claiming it was barred by limitation under section 21(4) of the U.P. Trade Tax Act. The High Court confirmed that the order was passed within one year of receiving the remand order, complying with statutory requirements and not barred by limitation.
2. The legality of tax imposition on purchases made within the State was questioned by the applicant. The assessing authority failed to serve notices to petty dealers, leading to a lack of evidence supporting purchases within the State. The burden of proof lay on the assessee under section 12-A of the Act, and the assessing authority was justified in presuming purchases were made from outside U.P., attracting tax liability.
3. The burden of proof on the assessee to claim exemption from tax was highlighted. Section 12-A places the responsibility on the dealer to establish facts within their knowledge to support exemption. Failure to provide complete details of purchases led to the presumption by the assessing authority, as seen in previous legal cases cited.
4. The High Court found no justification for levying interest on the fresh imposition of tax after the Tribunal's decision reversal. The applicant was not liable to pay interest on the re-imposed tax amount, as it was refunded earlier, and the imposition was a result of the revision filed in the High Court.
5. The applicant requested to pay the tax in monthly installments due to financial constraints. The High Court allowed this request, directing the assessee to pay equal monthly installments beginning September 1, 1995, without interest on the tax amount being paid in installments. Any amount deposited earlier towards tax would be adjusted in the final installments without interest.