2010 (6) TMI 729 - HC - VAT and Sales Tax

Whether the assessing authority has no occasion to repudiate the factual position depicted by the respondent before the appellate authorities? Held that - Neither before the Tribunal nor before this court any effort has been made by the revisionpetitioner to controvert the factual position projected by the respondent (on the basis of which the appeal preferred by the respondent was accepted). It is too late in the day for the revision petitioner now and that too without any material or cause to assail the findings recorded by the Deputy Commissioner (Appeals) as also by the Commercial Tax Tribunal Uttarakhand Dehradun. The factual conclusions drawn by the Deputy Commissioner (Appeals) have remained unassailed. The respondent has established that the goods which had entered the State of Uttar Pradesh from the entry check-post at Kulhal had actually exited from the State of Uttar Pradesh from exit check-post of Ghaziabad and had factually been sold in the State of Delhi. Thus viewed the respondent fully established the onus placed on him in terms of the proviso under section 28B of the 1948 Act Revision dismissed.

Summary

Issues:
1. Interpretation of section 28B of the U.P. Trade Tax Act, 1948 regarding transit of goods through the state.
2. Assessment of liability under section 15A(1)(q) of the U.P. Trade Tax Act, 1948 for failure to vacate transit pass.
3. Applicability of onus of proof on the owner or person-in-charge of the vehicle for goods transported outside the state.

Analysis:

1. Interpretation of section 28B:
The judgment involved a dispute regarding the transit of goods through the State of Uttar Pradesh as per section 28B of the U.P. Trade Tax Act, 1948. The provision states that if goods carried by a vehicle enter the state but are transported outside through another vehicle, the onus of proving the movement out of the state lies with the owner or person-in-charge of the vehicle. The appellate authorities accepted the respondent's evidence that goods transported from Himachal Pradesh had exited Uttar Pradesh and were sold in Delhi. The courts emphasized that the assessing authority had the opportunity to challenge this evidence but failed to do so, leading to the acceptance of the respondent's version.

2. Assessment under section 15A(1)(q):
The case involved an assessment under section 15A(1)(q) of the U.P. Trade Tax Act, 1948 due to the failure of the driver to vacate the transit pass at the exit point. The assessing officer imposed a fine based on the uncontroverted factual position. However, the respondent presented evidence showing that the goods had exited Uttar Pradesh and were sold in Delhi. This evidence was accepted by the Deputy Commissioner (Appeals) and the Commercial Tax Tribunal, leading to the dismissal of the appeal by the revision petitioner.

3. Onus of proof for goods transported outside the state:
The judgment highlighted the importance of the onus of proof on the owner or person-in-charge of the vehicle for goods transported outside the state as per the proviso of section 28B. The respondent successfully demonstrated that the goods had entered and exited Uttar Pradesh before being sold in Delhi, fulfilling the onus placed on them. The courts found no merit in the revision petition as the factual conclusions drawn by the Deputy Commissioner (Appeals) remained unchallenged, leading to the dismissal of the revision petition.

In conclusion, the judgment clarified the interpretation of relevant sections of the U.P. Trade Tax Act, 1948, emphasized the importance of onus of proof for goods in transit, and upheld the decisions of the lower appellate authorities based on the evidence presented by the respondent.