MILK FOOD LTD. Vs. COMMISSIONER VAT

JUDGEMENT

(1.) These are two appeals filed by M/s Milk Food Ltd., hereinafter referred to either as "the appellant" or as "the dealer" under Section 81 of the Delhi Value Added Tax Act, 2004 relating to the assessment years 1983-84 and 1982- 83 respectively.

(2.) The appellant is a company engaged in the business of manufacture of pure ghee and milk powder of different kinds in its factory at Bahadurgarh (Patiala). It has offices all over India.

(3.) We may first take up the appeal in STA No.14/2011. The brief facts giving rise to the appeal are as follows. An assessment was framed on the appellant by order dated 28.03.1988 passed under Section 23(3) of the Delhi Sales Tax Act, 1975 (hereinafter referred to as "DST Act?). In the course of assessment proceedings the assessing authority noted that the appellant had sold most of the goods to registered dealers against ST-1 forms in Delhi. He conducted a cross verification of these sales and found that the purchasing dealers had given a different account of these forms in their ST-2 account. This was put to the appellant for explanation and it was asked to adduce proof of payments, delivery of the goods etc. The appellant filed statements showing the mode of payment by draft. The assessing authority also found that ST-1 forms bearing same numbers were issued to the purchasing dealers. He therefore, wrote letters to get these verified by the respective wards. On the basis of the enquiries, he came to the conclusion that in all ST-1 forms where the ST-2 accounts given by the purchasing dealers were different and the payment was also not by cheque and the appellant was not able to show proof of delivery of the goods, the exemption claimed by the dealer cannot be allowed. The total turnover in respect of these forms came to Rs. 84,94,942/- which was taxed at the rate of 5%. In respect of ST-1 forms issued to M/s Naval Kishore & Co., M/s Durga Trading Co. and M/s Rajan & Co., the assessing authority refused to allow the exemption against the ST-1 forms on the ground that the payments made by them were not by cheque and the dealer was not able to adduce proof of delivery. Such transactions amounted to Rs. 94,96,443/- which was also taxed at the rate of 5%. The assessment so framed resulted in a demand of Rs. 12,18,211/- and a nominal penalty under Section 55 of the DST Act.