9911796707
TMI Blog2007 (9) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act ) is directed against the order of the Tribunal dated June 14, 2007 for the assessment year 2000-01. The applicant claimed to have made the purchases for Rs. 38,69,729.50 on behalf of four ex-U.P. principals. Out of which, three were claimed to be from Bombay and one from Calcutta. The applicant claimed that such purchases being in the course of inter-State purchases were not liable to tax in view of the decision of the apex court in the case of Commissioner of Sales Tax v. Bakhtawar Lal Kailash Chand Arhti reported in [1992] 87 STC 196 (SC); [1992] UPTC 971. The assessing authority however rejected the claim on the ground that the dealer was not able ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal. The Tribunal by the impugned order, allowed the appeal and remanded back the matter to the assessing authority. Before the Tribunal, the applicant contended that since the payments were made through draft the existence of ex-U.P. principals cannot be doubted. The Tribunal held that the burden lies upon the dealer to prove that the purchases were made on behalf of ex-U.P. principals. Since the notices could not be served and one party of Bombay M/s. Champasi Keshav Ji Company, Vasi, Mumbai to whom the notice was served had not responded the existence of the ex-U.P. principals appears to be doubtful. However, the matter has been remanded back to the assessing officer to make inquiry with regard to the drafts which are claimed to have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the dispatch of the goods, the said purchases are in the course of inter-State purchases and the State of U.P. has no jurisdiction to levy the tax. Therefore for coming to the conclusion that the purchases are in the course of inter-State purchases in view of the law laid down by the apex court it is to be seen whether there was any existing order or instruction on behalf of the ex-U.P. principals to make the purchases, entries of such purchases in the books of account, in the account of ex-U.P. principals, the dispatch of the goods at the destination of the ex-U.P. principals and the mode of payment. The existence of the ex-U.P. principals is essential and if the ex-U.P. principals are not in existence, the entire claim of the purchases ..... X X X X Extracts X X X X X X X X Extracts X X X X
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