1998 (2) TMI 588 - HC - VAT and Sales Tax

Summary

Issues:
1. Rejection of account books under U.P. Trade Tax Act.
2. Discrepancy in turnover and purchase details.
3. Validity of remand order by Trade Tax Tribunal.

Detailed Analysis:
1. The judgment involves two connected revisions against a common order by the Sales Tax Tribunal for the assessment year 1988-89 under the U.P. Sales Tax Act and Central Sales Tax Act. The dealer, engaged in manufacturing electrical goods, had its account books rejected due to non-maintenance of stock books and discrepancies in turnover figures. The assessing authority proceeded with best judgment assessments resulting in higher turnovers than disclosed by the dealer.

2. The dealer appealed these assessments, which were allowed by the Deputy Commissioner (Appeals) Trade Tax, directing acceptance of the disclosed turnover. The revenue then appealed to the Trade Tax Tribunal, which remanded the case back to the assessing authority. The dealer contested this remand, arguing that the Tribunal had no valid grounds for interference and should have dismissed the revenue's appeals.

3. The judgment references a previous case to establish that rejection of account books under Section 12(2) of the U.P. Trade Tax Act does not automatically necessitate an increase in turnover unless supported by adverse material. The assessment on best judgment should be a separate process from account book rejection. The Tribunal's power to remand for further investigation is acknowledged, but in this case, the Tribunal's reasons for remand were deemed unjustified. The discrepancies in purchase details were considered trivial, and the Tribunal's decision was overturned in favor of confirming the first appellate authority's order.

In conclusion, the Trade Tax Tribunal's orders were set aside, the revenue's appeals were dismissed, and the dealer was to be assessed based on the first appellate authority's orders. The revisions were allowed with no order as to costs.