Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 414 - HC - VAT and Sales TaxWhether there is some relevant material giving rise to prima facie inference that some turnover has escaped assessment - Escapement of turnover - Order of Reopening of assessment – Order passed under the proviso to Section 21(2) of the U.P. Trade Tax Act - Material to form reason to believe - Excess stocks raw-materials and finished goods – Held that:- It is matter of record that in a search operation carried on by the Officers of Central Excise Department, a discrepancy was found with regard to raw-materials and finished goods on physical verification vis-à-vis as found in the accounts book - Whatever may be proceedings under the Central Excise Act, the fact remains that assessee has not been totally exonerated nor there is any such case in the writ petition - In a search operation, excess stocks of raw-materials and finished goods were physically found - Where and in what manner, the excess stock has been dealt with by the petitioner and where it has gone, remains unexplained - Relying upon Commissioner of Sales Tax, U.P. versus M/s Bhagwan Industries (P) Ltd., Lucknow [1972 (10) TMI 90 - SUPREME COURT OF INDIA] the relevant consideration at the stage of issue of notice is whether there is some relevant material giving rise to prima facie inference that some turnover has escaped assessment - Whether that material is sufficient for making assessment or re-assessment u/s 21 would be gone into after notice is issued to the dealer and he has been heard in the matter or given an opportunity for that purpose. Effect of Repeal of U.P. Trade Tax Act on proceedings – Held that:- Learned counsel for Assessee in all fairness did not pursue the said argument when it was pointed out by learned Addl. Chief Standing Counsel that the issue stands settled against the petitioner by a Division Bench decision of this Court based on Supreme Court's decision – Therefore, there is relevant material on record to form a honest belief that the turnover of the petitioner has escaped taxation so as to justify the initiation of proceedings u/s 21 – There is no illegality or infirmity in the impugned order granting permission to the Assessing Authority to initiate re-assessment proceedings - The writ petition is dismissed – Decided against assessee.
|