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2018 (11) TMI 1441 - HC - VAT and Sales TaxExemption u/s 4-A of the U.P. Trade Tax Act, 1948 - negligibility of machines as regards total investments made - no inquiry was conducted by the Tribunal before passing the final order - principles of natural justice - Held that:- It being a case of eligibility to exemption, a liberal approach is not warranted at this stage. The burden was strictly on the assessee to establish its entitlement to exemption. Only if the assessee was found to fall within the four corners of the scheme of exemption, a liberal approach may become available for the remaining purpose. In view of the specific finding recorded by this Court to the effect that the investment of ₹ 41,000/- was not negligible in the context of total investment of ₹ 2,51,000/-, the Tribunal has not erred in recording the finding to that effect. Once the Tribunal was rejecting the entire claim made by the assessee, with respect to both the disputed machineries, it was never open to the Tribunal to record a finding contrary to that recorded by this Court - Mere mention of the same in the operative part of the order would not vest any authority with the Tribunal to examine that issue de novo. That issue may have become open if upon remand, the Tribunal may have reached a conclusion that one of the two machines was new. In that event, the cost of the remaining machinery may have been required to be examined to determine whether that was negligible. That is clearly not the case here. It would remain open to the revenue to examine whether the unregistered dealer/seller claimed by such assessee was genuine and not a mere pretence or false claim made to evade any further inquiry. Once the assessee failed to establish the identity of the seller and the genuineness of the bill documents against which such purchases were claimed to have been made the assessee prevented the revenue from making any further inquiry to determine whether the machinery in question had been or had not been used or acquired for use anywhere else, before being purchased by the assessee. Therefore, the Tribunal has rightly rejected the claim made by the assessee. Revision dismissed - decided against the assessee.
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