2013 (8) TMI 22 - HC - VAT and Sales Tax

Purchase from unregistered dealer - Tribunal deleted tax liability on presumptions - Held that - it was established from account books that the assessee had supplied 65 mm machine crushed stone blasts to Rehand. It was the case of the assessee himself that under the contract with N.T.P.C., he had supplied 65 mm machine crushed stone blasts after purchasing the same from Vidut Kumar Singh. Admittedly, Vidut Kumar Singh did not have any machine available with him for crushing. Therefore, the Assessing Authority as well as the First Appellate Authority were justified in recording the finding that the assessee had failed to establish purchase of machine crushed stone blasts of 65 mm, which he had admittedly supplied to N.T.P.C. from a registered dealer, hence he was liable to pay tax on the value of goods supplied - Decided in favour of Revenue.

Summary

Issues: Delay Condonation, Tax Liability on Stone Blasts Supply

Delay Condonation:
The judgment addressed the delay of 195 days in filing the revision, which was condoned by the Court as the cause shown for the delay was explained to the satisfaction of the Court. No objections were filed to the delay condonation application, leading to its allowance. The delay condonation was a procedural issue resolved by the Court to enable the revision to proceed despite the delay.

Tax Liability on Stone Blasts Supply:
The case involved the tax liability of the assessee concerning the supply of 65 mm machine crushed stone blasts to N.T.P.C., Rehand Nagar. The Assessing Authority and the Joint Commissioner had previously held that the assessee had purchased the stone blasts from an unregistered dealer, leading to the imposition of tax liability. The assessee's appeals were dismissed by the Commissioner (Appeal), following which a second appeal was filed before the Tribunal. The Tribunal, however, allowed the second appeal based on presumptions, stating that the assessee was not responsible for tax payment on the stone blasts supplied. The Court disagreed with the Tribunal's decision, highlighting that there was a lack of evidence to support the presumption made by the Tribunal. The Court emphasized that the assessee had failed to establish the purchase of machine crushed stone blasts from a registered dealer, leading to the confirmation of tax liability by the Assessing Authority and the First Appellate Authority. Consequently, the Court quashed the Tribunal's order and maintained the decisions of the assessing authority and the First Appellate Authority, dismissing the revision.

In conclusion, the judgment addressed the issues of delay condonation and tax liability on the supply of stone blasts. The Court's decision focused on the lack of evidence supporting the assessee's claims regarding the purchase of stone blasts from a registered dealer, leading to the confirmation of tax liability. The Tribunal's decision was overturned due to the misapplication of law and adverse presumptions. The judgment emphasized the importance of substantiated claims and upheld the decisions of the lower authorities regarding tax liability.