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2014 (4) TMI 877 - HC - VAT and Sales TaxNature of the transaction - paper transactions - sales of raw skins - Transfer of consideration to sister concern - whether taxable sale or not - Held that:- Decision in State of Karnataka Versus Azad Coach Builders Pvt. Ltd. and another [2010 (9) TMI 879 - SUPREME COURT OF INDIA] followed –Tribunal`s order cannot be accepted solely on the basis that the financial transactions with any finance company would ultimately decide the character of the transaction between the purchaser and the seller - All the dealings that the finance company had would be the arrangement that the dealer had with the finance company for bill discounting - Beyond that, the agreement with the finance company could be taken in as the basis for deciding whether at all there was any transaction of purchase or sale between the parties. The assessee does not deny the fact they had issued invoices in the name of the assessee herein in respect of the sale of dressed skins - The question as to whether there had been a taxable sale or not must be looked at from the facts other than the bill discounting transaction and the purchase ledger extract – This does not supply the necessary proof that the assessee had no transaction at all except as a paper transaction - When the assessee was confronted with the documents, the proper course for the assessee was to place necessary materials to show that these transactions were only paper transactions - In the absence of any such proof and the burden not being discharged by the assessee, we have no hesitation in restoring the assessment – Plea of the assessee that in the matter of calculating penalty, the AO ought not to have taken in the AST liability to work out the penalty at 150% - Decided partly in favour of revenue.
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