2009 (1) TMI 813 - HC - VAT and Sales Tax

Stock transfer v/s inter-State sale - Held that - A bare perusal of the order of the Tribunal, relating to the assessment year 1992-93 would show that the Tribunal has expressed its general agreement without recording any specific finding with the order of the first appellate authority. The Tribunal, being the last fact finding authority, should have considered the submissions of the applicant as to whether the transaction in question is stock transfer or inter-State sale by giving its own reasoning, may be in brief. The explanation furnished by the dealer-applicant in respect of 16 vehicles is that these vehicles were already lying in the depot and were sold to the party concerned from the depot. There was no prior contract of sale or purchase of these vehicles. Since the Tribunal has not examined this aspect of the case, it is desirable that the matter may be restored back to the Tribunal for fresh consideration. In the result, the order of the Tribunal so far it relates to the assessment year 1992-93 is concerned is hereby set aside. The matter is remanded back to the Tribunal to re-hear and re-decide the Appeal No. 1550 of 1999 relating to the assessment year 1992-93 (Central).

Summary

In this judgment from the Allahabad High Court, the disputes involve the assessment years 1991-92 and 1992-93. The applicant, a public limited company, was granted an eligibility certificate under section 4A of the U.P. Trade Tax Act, 1948. After the expiration of the exemption period, the applicant opened sales depots and branches outside of U.P. A survey conducted in 1991 revealed incriminating material, leading to the rejection of the dealer's claim regarding stock transfer. The assessing officer treated these as central sales.

For the assessment year 1991-92, all three authorities found that the dealer transferred vehicles outside U.P. based on seized materials, rejecting the dealer's explanation. The Tribunal dismissed the appeal for the 1992-93 assessment year without providing its own findings on whether vehicles were sold in inter-state sales. The High Court found this omission unacceptable and remanded the matter back to the Tribunal for fresh consideration. The Trade Tax Revision No. 1111 of 2000 was dismissed, while Trade Tax Revision No. 1460 of 2000 was allowed in part. The judgment concluded with no order as to costs.