2004 (4) TMI 560 - HC - VAT and Sales Tax

Summary

Issues: Assessment years 1981-82 (Central) and 1982-83 - Stock transfer and job-work claims.

Stock Transfer Issue:
The assessing authority rejected the claim of stock transfer due to the use of code words in bills and lack of explanation by the dealer. The burden of proof under section 6A of the Central Sales Tax Act lies on the dealer to prove goods transfer was not a sale. The Tribunal erred in accepting the stock transfer claim mechanically without considering the burden of proof on the dealer. The Tribunal's decision was contrary to the Act, placing the burden of proof on the department. The matter is remanded for fresh consideration in light of section 6A.

Job-Work Claim Issue:
The assessing authority found discrepancies in the job-work claim, alleging a concealment of sales turnover. The Tribunal's decision to accept the job-work claim was unsatisfactory as it did not consider the terms of the contracts or the assessing authority's findings. The Tribunal should have examined the case details thoroughly before making a decision. The Tribunal's failure to consider key aspects led to the decision being set aside for reconsideration. The matter is remanded for a fresh decision based on a detailed examination of the case facts and contract terms.

In conclusion, both revisions were allowed, setting aside the Tribunal's orders for the assessment years in question. The Tribunal is directed to re-examine the issues of stock transfer and job-work claims, considering the legal provisions and factual evidence presented in the case records.