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TMI Blog2021 (12) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... -1 Form. The respondent had led no evidence in respect of fraud or duress apart from self-serving statement. The consignment of goods was sent from the month of November 1985 to January 1986. The respondent had signed large number of documents during this period. However, no complaint was made to any person or authority or even to the plaintiff. It is a denial of receipt of goods without any basis raised only in the written statement filed. Such stand is wholly bereft of any truth and is thus rejected. The debit notes stamped and signed by the respondents were in respect of trade discount on the wholesale price mentioned in the invoice. Having accepted the trade discount, which is evident from the stamp and signatures not only on the debit notes but also on the invoice as well as on ST-1 Form, shows that the goods were actually lifted by the respondents for which payment has not been made. The respondents have taken up wholly untenable ground that the documents were signed under duress - The High Court in the appeal has gravely erred in setting aside the reasoned order of the learned Single Bench on the grounds which were not even raised by the respondents. The suit is decree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuments were dishonored. The appellant supplied goods worth ₹ 72,27,079/- by 189 consignments against the term of direct payment. The goods were duly received by respondent no.1 with the signatures of respondent no. 2, its director, but they defaulted in making the payments. The respondents made a payment of ₹ 2,99,480/- for 9 consignments by hundi documents but the hundi documents were also returned by the bank unpaid. It was pointed out that since respondent No. 1 was a wholesaler, they were getting trade discount of ₹ 700-750 per ton. Thus, the appellant claimed the following amount: Principal amount ₹ 71,82,266.00 Interest on outstanding Bills ₹ 24,59,499.31 Total ₹ 96,41,765.31 4. In the written statement, it was alleged that the appellant company was owned and controlled by the family of Bajoria headed by S.S. Bajoria prior to May 1986. The said family was closely connected to the respondents. The appellant installed a paper manufacturing mill at Saharanpur in 1935-36 and offered dealership to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious and fraudulent transactions. The suit has been dismissed by the Division Bench on such issue inter-alia on the ground that documents had not been proved by summoning the person, who had issued such large number of documents (Ex-P1 Ex-P976). 6. The appellant filed an affidavit of Shri A.S. Bhargava, Retainer, formerly General Manager-Management Services on 8.12.2003. In such affidavit, the appellant has produced 976 documents including copies of all the invoices, debit notes, delivery challan, ST-1 Form, interest debit notes, letter of the respondents, credit notes and the statement of accounts. All the invoices are stamped and signed by the respondents. The appellant also produced ST-1 Form in respect of each of the invoices stamped and signed by respondents. In the cross-examination, the witness stated that in case of sale transaction by the company/manufacturer with any wholesaler, the sales tax can be avoided against ST-1 Form. However, if the manufacturer would sell these goods directly to any retailer or consumer, sales tax would be payable. He further deposed that he has not placed on record the copies of the books of accounts and that the Bills-cum-Challans have no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having any godown at Delhi. As per the laws applicable to Sales Tax, unless respondent No.1 proved being a dealer registered at Delhi, it could not effect any sale of paper at Delhi without paying Central Sales Tax. It is obvious that respondent No.1 surreptitiously removed its goods from its mill at Saharanpur not under the cover of the invoices raised in favour of the appellant, for the reason these invoices show an intra-city sale and not an inter-city sale. The respondent No.1 has not led any evidence with respect to goods receipts pertaining to movement of goods from its mill at Saharanpur to Delhi and much less shown delivery by any transporter to the appellant. The aforesaid has been totally ignored by the learned Single Judge and therefrom it is apparent that the sales were fictitious i.e. appellant was shown as a namelender. Respondent No.1 managed to cheat the revenue. 9. Learned counsel for the appellant argued that the finding of the High Court is patently erroneous as the respondents have not denied that the appellant is a dealer in the State of Delhi which is evident from Para 10 of the written statement reproduced above. It was further pointed out that the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot applicable in the present case. The respondents have alleged that the alleged bills have been raised on the basis of fictitious and fraudulent transactions. Since such stand was of the respondents, the onus of proof of such issue was on the respondents. Such issue necessarily implies that the raising of the invoices is not in dispute but it was alleged that such bills are fictitious and fraudulent. The onus of proof of issue no. 4, whether the defendant no.1 accepted the bills without actual delivery of goods to it is also upon the respondents as it is their stand that the bills were accepted without actual delivery of goods. 14. The reasoning of the Division Bench that the witness examined by the appellant was not in Delhi when the transactions took place is wholly irrelevant to determine whether the invoices, debit notes and ST-1 Form are proved or not. It is not a case of mere exhibition of documents. Such documents were proved by a witness as such documents were kept by the appellant in their ordinary course of business. All these documents are stamped and counter-signed by the representatives of the respondents. Such documents have come from the records of the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. Though the respondents have denied the receipt of goods but the receipt of goods is proved by numerous documents stamped and signed by the respondents. 17. Section 4(2)(a)(v) of the Delhi Sales Tax Act, 1975 excludes the sale made to the registered dealer from the taxable turnover, which reads thus: (2) For the purposes of this Act, taxable turnover means that part of a dealer s turnover during the prescribed period in any year which remains after deducting therefrom,- (a) his turnover during that period on- (i) sale of goods . xxx xxx (v) sale to a registered dealer- (A) of goods of the class or classes specified in the certificate of registration of such dealer, as being intended for use by him as raw materials in the manufacture in Delhi of any goods, other than goods specified in the Third Schedule or newspapers,- (1) for sale by him inside Delhi; or (2) for sale by him in the course of inter-State, trade or commerce, being a sale occasioning, or effected by transfer of documents of title to such goods during the movement of such goods from Delhi; or (3) for sale by him in the course of export outside India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 to January 1986. The respondent had signed large number of documents during this period. However, no complaint was made to any person or authority or even to the plaintiff. It is a denial of receipt of goods without any basis raised only in the written statement filed. Such stand is wholly bereft of any truth and is thus rejected. 21. The debit notes stamped and signed by the respondents were in respect of trade discount on the wholesale price mentioned in the invoice. Having accepted the trade discount, which is evident from the stamp and signatures not only on the debit notes but also on the invoice as well as on ST-1 Form, shows that the goods were actually lifted by the respondents for which payment has not been made. The respondents have taken up wholly untenable ground that the documents were signed under duress. Large number of documents such as invoices, debit notes and ST-1 Form spread over 3 months is unbelievable to be an exercise of duress. The stand of the respondents is wholly untenable and unjustifiable in law and is only to defeat the legitimate claim raised by the appellant. The High Court in the appeal has gravely erred in setting aside the reasoned order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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