2005 (11) TMI 464 - HC - VAT and Sales Tax

Summary

Issues:
1. Dispute regarding assessment year 1985-86 under the U.P. Trade Tax Act.
2. Rejection of claim of exemption by the Assistant Commissioner.
3. Appeal allowed in part by Deputy Commissioner (Appeals).
4. Second appeal rejected by the Tribunal.
5. Rejection of account books by assessing authority for best judgment assessment.
6. Setting aside of assessment order due to lack of basis for fixing turnover.
7. Jurisdiction and powers of assessing authority after remand.
8. Comparison of Division Bench judgments.
9. Failure to produce account books despite opportunities.
10. Discretionary nature of first appellate authority's order.
11. Appellate authorities' role in examining account books.
12. Finality of Tribunal's direction regarding examination of account books.

Analysis:
1. The dispute in this case revolves around the assessment year 1985-86 under the U.P. Trade Tax Act. The Assistant Commissioner accepted the account books but rejected certain exemption claims, leading to subsequent appeals and orders by higher authorities.

2. The Deputy Commissioner (Appeals) partially allowed the appeal by setting aside the assessment order and remanding the case to the assessing officer with directions. The Tribunal later rejected the second appeal, emphasizing the need for detailed examination of the account books.

3. Despite multiple opportunities, the dealer failed to produce the account books for examination after remand, prompting the assessing authority to reject the books and make a best judgment assessment. This decision was challenged, leading to the setting aside of the assessment order due to lack of a basis for determining turnover.

4. The judgment delves into the jurisdiction and powers of the assessing authority post-remand, citing a Full Bench decision that outlines the authority's wide powers subject to directions from higher authorities. The comparison of Division Bench judgments highlights the specific context of each case.

5. The applicant's failure to produce the account books despite opportunities is noted, with the assessing authority reframing the assessment order under compelling circumstances. The discretionary nature of the first appellate authority's decision to grant further opportunities is emphasized.

6. The role of appellate authorities in examining account books is clarified, with the assessing authority deemed most appropriate for detailed examinations. The finality of the Tribunal's direction regarding the examination of account books is underscored, limiting the applicant's ability to insist on further examinations.

7. Ultimately, the revision is dismissed, with costs imposed, based on the lack of merit in the arguments presented and the adherence to legal principles and previous judgments.