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2013 (4) TMI 498 - HC - VAT and Sales TaxReopening of assessment – stock transfer – A.O. submitted that petitioner has claimed the stock transfer through form F to its branches at Punjab, Rajasthan and Delhi which was accepted in the assessment order but these branches were not disclosed in the application for granting registration under the Central Sales Tax Act therefore, liable to pay CST @ rate of 10% and order u/s 21(2) has been passed. Petitioner submitted section 6-A lays down that the burden to prove is on the assessee to show that the goods did not move in pursuance of any contract, which has been discharged by the petitioner by filing form 'F'. No illegality or irregularity of any kind has been found in the form submitted by the petitioner. There being no dispute with regard to the genuineness of the form F, no case for reopening the assessment under section 21 of the U.P. Trade Tax Act has been made out. Held that –We find that the case of the respondents lacks any allegation of fraud against the petitioner after considering the provisions of sub-section (1) of section 6A. The genuineness or correctness of the form issued by its branches situate outside the State of U.P., who had obtained the form F from their registering authority is not an issue. After all form F is a document to prove that the goods were not moved in pursuance of contract of sale from one State to another. There is no dispute that the forms were not issued by the branches of the petitioner. It is a different thing to say that the factum of existence of branches were not disclosed in the registration application. The law does not provide that in such matters, the contention of dealer with regard to the stock transfer is liable to be rejected. In this facs situation, we fail to understand as to how it can be said that the turnover of the petitioner has escaped the assessment within the meaning of section 21 of the U.P. Trade Tax Act. petitioner is right in his submission that the impugned order granting sanction to reopen the assessment is no order in the eyes of law. The impugned order is bad and cannot be allowed to stand. The writ petition succeeds and is allowed.
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