9911796707
TMI Blog2007 (1) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... is situated at Bareilly in U.P. and in the State of Uttaranchal, the applicant has depot at Kichcha. There was one sale promoter of the applicant-company at Kichcha namely, M/s. Shyamji Cement Distributor, Kichcha having its head office at Bareilly. The applicant used to send the cement by way of stock transfer from its Rewa factory to Bareilly depot and also directly to Kichcha depot. It was claimed that the goods were also dispatched from Bareilly depot to Kichcha by way of stock transfer and, thereafter, same were sold to the various parties of Uttaranchal. On January 3, 2004 survey was made at the premises of M/s. Shyamji Cement Distributor, Bareilly in which certain documents were seized, which were mainly related to the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that before S.T.O. (S.I.B.), Bareilly, the applicant had not produced the dispatch advices, challans, builties and loading invoices and the stock register of Bareilly godown for the assessment year 2002-03 for verification. The report of buffer stock was also demanded but the same was also not produced. Loading invoices prior to loading invoice No. 315 were also demanded but the same were not produced. The applicant being aggrieved by the order of the assessing authority, filed appeal before Joint Commissioner (Appeals), Trade Tax, Allahabad. Joint Commissioner (Appeals) vide order dated May 13, 2006 allowed the appeal and accepted the impugned dispatches as stock transfers and deleted the tax on the amount of Rs. 23,97,974. Being aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to prove the stock transfers and the receipt of the cement at Kichcha depot it was necessary for the applicant to produce the loading invoices and the stock register and the further dispatches of the goods from Kichcha depot but the record shows that stock register and loading invoices of Kichcha depot have not been produced. The Tribunal further held that the assessing authority had also failed to summon the stock register of Kichcha depot and all loading invoices, which are necessary to judge the correctness of the stock transfers under rule 75 of the U.P. Trade Tax Rules, 1948 (hereinafter referred to as "the Rules"). In this view of the matter to provide the opportunity to the applicant to produce stock register, dispa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the seized documents, it was found that for the assessment year 2003-04 two builties were prepared from the Bareilly depot itself, one for the Kichcha depot and another for Kichcha depot to the parties concerned, which clearly establishes that there were pre-existing orders of the parties of Uttaranchal and the goods had moved from Bareilly depot to Uttaranchal in pursuance of the orders and, therefore, the assessing authority had every valid reason to doubt the stock transfers for the assessment year 2002-03 also and to make a deep enquiry in this regard. He submitted that in the process of enquiry the assessing authority had asked to produce the stock register of Kichcha depot and loading invoices to verify the receipt of the cement at K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment year 2003-04 but it raised a reasonable doubt to the stock transfers for the assessment year 2002-03 also and, therefore, in the process of enquiry to judge the correctness of the stock transfers if assessing authority required the applicant to produce the stock register of Kichcha depot and all loading invoices and other documents, in support of the claim of stock transfers, they should have been produced. Needless to say that under section 6A of the Central Act, burden lies upon the assessee to prove the claim of stock transfers. In case if the desired documents have not been produced by the applicant, the assessing authority should have summoned those documents in exercise of powers under rule 75 of the Rules. Thus, I do n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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