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TMI Blog2016 (1) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Tax (hereafter 'the Tribunal') in Appeal No.1214/ATVAT/11- 12. The said appeal was directed against an order dated 23rd November, 2011 passed by the Additional Commissioner (Appeals) Zone-I [hereafter 'AC(A)'] under Section 47 of the Delhi Sales Tax Act, 1975 (hereafter 'DST Act') whereby an order dated 22nd March, 2004 passed by the Assessing Authority (hereafter 'AA') under Section 24 of the DST Act for the AY 1994-95 was upheld. 2. The Assessee assailed the order dated 22nd March, 2004 passed by the AA principally on the ground that it was beyond the period of limitation as specified under Section 24(1) of the DST Act. According to the Assessee, the reassessment beyond the period of four years from the date of final order of assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T-35 forms during the relevant period. The Assessee had declared inter-state sales of Rs. 8,33,366/- and local sales of Rs. 2,10,375/- (thus, a total taxable sales of Rs. 10,43,741/- had been reported). The AA found that the closing stock as per the Assessee's trading account was reflected as Rs. 3,30,701/-. On the aforesaid basis, the AA concluded that the Assessee had misused forms of value of Rs. 26,46,209/-. Accordingly, the gross taxable turnover of the AA was enhanced by the aforesaid amount on which tax at the rate of 12% was demanded. In addition, the AA also taxed the sale of two cars for Rs. 64,410/-. The AA raised a total demand of Rs. 8,32,450/-. 3.4 Aggrieved by the aforesaid order dated 22nd March, 2004, the Assessee preferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red that its turnover of sale of goods to registered dealers was Rs. 8,49,985/-. The learned counsel contended that the returns had disclosed all facts that were necessary and, therefore, the Assessee could not be accused of concealing any material particulars. 5. Countering the aforesaid argument, the learned counsel for the Revenue produced the original file which included the copy of the return filed by the Assessee. The return for the period ending 30th June, 1994 available in the file indicated that the Assessee had reflected Rs. 8,49,985/- as "turnover on sale of goods declared tax free" and the column indicating "turnover on sale of goods to registered dealers" was left blank. The learned counsel also pointed out that the column ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to furnish an explanation. Thereafter, on 9th January, 2004, the concerned officer concluded that a part of the turnover of the Assessee had escaped assessment to tax and, accordingly, notice in form ST-15 was issued to the Assessee. 8. At this stage, it is relevant to refer to Section 24 of the DST Act which reads as under:- "24 - Turnover escaping assessment (1) where after a dealer has been assessed under section 23 for any year or part thereof, the Commissioner has reason to believe that the whole or any part of the turnover of a dealer in respect of any period has escaped assessment to tax or has been under assessed or has been assessed at a rate lower than the rate at which it is assessable, or any deduction has been wrongly made t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (2) of Rule 23A also expressly provides that the provisions of Sub-rule (1) of Rule 23A would also apply to a dealer who purchases first point taxable goods free of tax on the strength of his registration certificate and who utilizes such goods not for reason of sale but for the specified purposes. Rule 23A of the Rules is reproduced below for ready reference:- "23-A. Payment of tax on goods utilized for purposes other than those specified in certificate of registration or the authorization. (1) A purchasing dealer referred to in the third proviso to clause (a) of sub-section (2) of section 4, shall include the purchase price of the goods or any part thereof which are utilized by him in any return period for a purpose other than th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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