9911796707
TMI Blog2008 (1) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... U.P. Trade Tax Act, 1948 relating to the assessment year 1999-2000, with regard to three different dealers. The questions of law sought to be raised in these revisions are: "(i) Whether the Tribunal was legally justified in reducing the sale rate of sand at Rs. 30 without any basis on record? (ii) Whether, on the facts and circumstances of the case, the Trade Tax Tribunal is justified in estimating the taxable turnover below the royalty paid by the dealer inasmuch as the royalty paid by the dealer forms part of the taxable turnover of the dealer?" All the three dealers carry on business of mining of sand. For carrying on mining activity a person is required to obtain a lease for which he has to pay royalty to the State. In the case of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate at Rs. 40 per cubic metre. In doing so, he also relied upon the judgment of the apex court in the case of Dyer Meakin Breweries Ltd. v. State of Kerala reported in [1970] 26 STC 248 for the proposition that all the expenditure incurred prior to the sale would form part of the taxable turnover. On these findings the assessing officer estimated the turnover and imposed liability of tax on each of the dealer vide separate assessment order each dated December 24, 2002. All the dealers filed appeals which were dismissed by the Joint Commissioner (Appeals) by order dated August 31, 2002. Thereafter the dealers preferred second appeals, which were clubbed together and the Tribunal vide judgment and order dated August 1, 2005 allowed all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared at the same time. Further it was submitted that the assessing officer has also recorded that all the dealers had not maintained the complete account books as required under law which also entails rejection of account books. According to Sri Pandey, the Tribunal, without dealing with the reasoning given by the assessing officer, has allowed the second appeals and has accepted the turnover declared by the dealers thereby vitiating the impugned judgment. He further submitted that the finding of the Tribunal accepting the account books could not be sustained as the Tribunal did not have any other material before it which could convince that the account books were properly maintained in accordance with law. Merely because the assessing offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount are already known to such person. The other expenses involved in obtaining such lease are also not hidden but are known to the party applying. In the present case quality of the sand which the dealer was to excavate would normally be known. The area of mining is also determined. It could thus, safely be concluded that the business of mining lease is a planned business and is not a business of unknown potential. Therefore, it would be difficult to hold that the turnover of sale under a mining lease would be less than the amount of expenditure involved in obtaining the lease for removal and sale of sand. This would be normal expectation of a businessman carrying on sand mining but it cannot be conclusively said that there cannot be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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