9911796707
TMI Blog2009 (8) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 1999- 2000 (U.P/ Central) (iii) Any other and further writ, order or directions which this Hon ble Court may deem fit and proper in the circumstances of the case be also issued in favour of the petitioner. The petitioner of Writ Petition no.604 of 2006 and the petitioner of Writ Petition No.605 of 2006 are hereinafter referred to as petitioner no.1 and petitioner no.2 respectively. 3. The background facts of the case in a nutshell essentially are as follows: 4. The petitioners are a registered dealers under the provisions of U.P.Trade Tax Act (hereinafter referred to as the Act ) as well as under Central Sales Tax Act ( in short CST Act ) and are carrying on the business of purchase and sale of Petroleum oil and petroleum products. The petitioner no.1 is owned by Jagarti Khetan and the petitioner no.2 is owned by his wife Smt. Mukta Khaitan. The assessment order for the assessment year 1999-2000 was passed by the assessing authority under rule 41(8) of U.P.Act and under section 9(2) of CST Act. 5. The petitioner no.1 had disclosed interstate sales of ₹ 13,32,24,500/- against form- C which were issued by the Ex U.P. purchasers. Petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 488800.00 3- 0951817 524160.00 4- 0951815 366600.00 5- 0951825 342160.00 6- 0951810 537680.00 7- 0951811 562120.00 8- 0248852 478400.00 9- 0248853 454480.00 10- 0248854 583700.00 11- 0248855 406640.00 12- 0248859 611520.00 13- 0248860 430560.00 14- 0248861 479960.00 15- 0248873 474240.00 16- 0248872 499200.00 17- 0248881 483860.00 18- 0248886 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0876951 468312.00 (iv) Sales Tax Officer (C444) Bandra Division Mumbai vide his letter No.STI( C-444)/ Bandra Div/ 400056/ 2016/BC/1704- 327 dated 13-5-2005 informed that as per office record Form- C issued to Jai Govind Trading Company during the year 1998-99. Registration certificate has been cancelled w.e.f. 01-4-1999 or dealer has left the place of business long back. The dealer was dealing in rice and Bardana. Form-C Amount 1- 2352854 415480.00 2- 2352855 452140.00 3- 2352857 478400.00 4- 2352858 502320.00 5- 2352862 502320.00 6- 2352864 502320.00 7- 2352865 430560.00 8- 2352867 275080.00 9- 2352868 478400.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year, was wrong. It is also submitted that the proceeding under section 21 have been illegally initiated by respondent no.3 against the petitioners. He has further submitted that no liability may be fastened on a selling dealer for the defaults committed by the purchasers in issuing forms. Provisions of the CST Act does not place on the selling dealers the burden of making all sorts of verification. 12. Learned Standing Counsel appearing on behalf of the respondents has submitted that the notices issued by respondent no.2 3 contained sufficient information and relevant particulars and material for initiation of proceedings under section 21 of the Act. The assessing authority had reason to believe on the basis of the material available on record that turnover had accepted turnover. It has further been submitted that the facts of the case discloses calculated, planned commissioning of fraud and evasion of huge amount of Government revenue. Therefore the authority concerned were fully justified in initiating proceeding under section 21 of the Act. 13. Heard Sri Vishwajit, learned counsel for the petitioner, Sri A.C.Tripathi, learned Standing counsel appearing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and Rule 12(8)(c)(1a) of the Rules clearly indicate that the dealer may be entitled to benefit of concessional rate of tax by submitting Form-C only if such forms are obtained by the registered dealer (purchasing dealer) from the Prescribed authority and such declaration/ Form-C should be signed by the competent person. The benefit of concessional rate of tax taken by the petitioner lacks above mentioned mandatory requirements of the CST Act and the Central Sales Tax Rules. Therefore, the proceedings under section 21 of the Act cannot be said to be invalid or unjustified . 17. Learned counsel for the petitioner has placed reliance on the following decisions of this Court namely (1) M.L.Shukla Company vs. Commissioner of Sales Tax, Kanpur, 1981 UPTC 596, (2) M/s Bharat Iron Stores vs. Commissioner of Sales Tax 1994 UPTC 1340 , (3) M/s Jain Sudh Vanaspati vs. Commissioner of Sales Tax and (4) Star Paper Mills Limited, Saharanpur vs. Commissioner of Sales Tax, 2004 NTN Vol (24) Page-1. The facts and circumstances of the aforesaid cases are not applicable in the present matter. In our opinion they are clearly distinguishable and has no application on the facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the grounds are of an extraneous character, the same would not warrant initiation of proceedings under the above section. If, however the grounds are relevant and have a nexus with the formation of belief regarding escaped assessment, the assessing authority would be clothed with jurisdiction to take action under the section. Whether the grounds are adequate or not is not a matter which would be gone into by the High court or this Court for the sufficiency of the grounds which induced the assessing authority to act is not a justiciable issue .What can be challenged in the existence of the belief but not the sufficiency of reasons for the belief. At the same time, it is necessary to observe that the belief must be held in good faith and should not be mere pretence. 10- It may also be mentioned that at the stage of the issue of notice the consideration, which has to weigh is whether there is some relevant material giving rise to prima facie inference that some turnover has escaped assessment. The question as to whether, that material in sufficient for making assessment or reassessment under section 21 of the Act would be gone into after notice is issued to the dealer and he ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
