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2021 (11) TMI 435 - HC - VAT and Sales TaxLevy of tax on Bitumen - no authorisation was sought by the assessing authority and given by the Additional Commissioner, Allahabad Zone, Allahabad for initiation of proceeding as per provision to section 21(2) of the U.P. Trade Tax Act 1948 to tax Bitumen - material on record to form a "reason to believe" that the turnover thereof has escaped from assessment, or not - no exemption was given in the original assessment order - Tribunal was legally justified or not addressing itself on the application given under section 12-B, of the U.P. Trade Tax Act, 1948 - Bitumen was supplied by the department to the contractee for the construction of road in the civil work contract performed during the assessment year 2001-02. HELD THAT:- The record reveals that at the time of passing of the original assessment order the benefit of the same was given after due verification. Thereafter reassessment proceeding has been initiated . The permission was granted by the Additional Commissioner, Allahabad Zone, Allahabad by order dated 15.11.2006. The reassessment order dated 1.9.2006 reveals that two dealers from which tax paid purchases has been shown by the revisionist are namely; M/s Singh Stone Mill, Kabrai, Mahoba and M/s Mahashakti Stone Mill, Kabrai, Mahoba. There is no information whatsoever contrary to the material on record. So far as M/s Singh Stone Mill for disbelieving the purchases made by the dealer is concerned, the only information has been received that the selling dealer has neither produced bill book nor has given the details of sale list. From the perusal of the record it shows that there is no material which could be attributed that the wrong claim having been made by the revisionist. The revisionist had admittedly shown purchases of gitti against the cash memo which has not been disbelieved at any stage. The reassessment proceeding has only been initiated as the selling dealer has not shown the cash memo and the sale list. There is no finding of any material so far as M/s Mahashakti Stone Mills as no enquiry what soever has been brought on record. The initiation of reassessment proceeding is bad. Further once the revisionist has brought on record by means of an application under section 12-B of the Act before the Tribunal that the Bitumen has neither been used nor purchased by the revisionist but the same was given by the PWD department for its use for repairs of the road. In absence of any material on record the assessing authority was not justified in imposing tax on the use of Bitumen. The revision is allowed with cost of ₹ 5,000/- and the question of law is answered accordingly.
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