2008 (7) TMI 902 - HC - VAT and Sales Tax

Summary

Issues:
1. Dispute over turnover of coal dust for the assessment year 1994-95.

Analysis:
The judgment in the present case involves a dispute regarding the turnover of coal dust for the assessment year 1994-95 under the U.P. Trade Tax Act, 1948. The dealer, engaged in the manufacturing of glass wares, filed a revision challenging the estimation of suppressed turnover of coal dust by the assessing authority. The rejection of the account books by the authorities is not contested in this revision.

The applicant-dealer disclosed the sale of coal amounting to Rs. 26,08,007, which was not disputed by the assessing authority in terms of concealment. However, based on an enquiry report, the assessing officer estimated the suppressed turnover of coal dust at Rs. 6,51,993, which was subsequently confirmed in the second appeal. The main contention raised by the applicant was the lack of material to justify the enhancement of the turnover of coal dust.

Upon considering the arguments presented by both parties, the court observed that none of the authorities had found anything adverse regarding the turnover of coal dust. The assessing authority specifically noted the absence of any attempt to conceal the turnover of coal by the applicant. The court emphasized that in the absence of material demonstrating concealment of turnover, there was no basis to increase the turnover of coal dust for the relevant assessment year.

The court further highlighted that an enquiry report from a subsequent assessment year was irrelevant to the present case, as each assessment year is treated as a distinct unit. Consequently, for the assessment year 1994-95, without any adverse material, there was no justification for estimating the sale of coal dust and imposing tax on it.

As a result of the detailed analysis, the revision was partially allowed, ruling that the applicant is only liable to pay tax on the admitted turnover of Rs. 26,08,807 of coal dust. The excess demand related to the sale of coal dust was set aside, and no costs were awarded in the matter.