ASIAN P.P.G. INDUSTRIES LTD. Vs. ADDITIONAL COMMISSIONER GRADE I, TRADE TAX, GHAZIABAD ZONE, GHAZIABAD AND OTHERS

JUDGEMENT

(1.) By means of the present writ petition, the petitioner is challenging the orders dated August 18, 2007 passed by the Additional Commissioner, Grade 1, Trade Tax, Ghaziabad Zone, Ghaziabad, by which he has granted approval under the proviso to section 21(2) of the U.P. Trade Tax Act, 1948 (hereinafter referred to as ''the Act") to initiate the proceeding beyond the normal period and the notices dated August 30, 2007 issued in pursuance thereof under section 21(1) of the Act by the assessing authority for the assessment year 2001-02 both under the U.P. Trade Tax Act, 1948 and under the Central Sales Tax Act, 1956.

(2.) The brief facts of the case are that the petitioner is a company incorporated under the Companies Act, 1956 and is carrying on the business of manufacture and sale of paints. The petitioner was getting the paints manufactured through Asian Paints India Limited (Kasna). The petitioner had a depot at Gurgaon (Haryana). During the year under consideration, the petitioner had disclosed the stock transfer to its Gurgaon depot for Rs. 6,54,91,661.32 and furnished 159 form F for Rs. 6,45,87,874.65. The assessing authority while passing the original assessment order dated March 15, 2004 for the assessment year 2001-02 has examined form F and has accepted the claim of stock transfer on the ground that on the enquiry of the stock transfer invoices, GRs and other documents, no material was found that the goods had been moved in pursuance of prior contract of sale. It appears that a survey was made on September 10, 2004 by the Sales Tax Officer (SIB), Noida, at the premises of M/s. Asian Paints India Limited (Kasna). At the time of survey, one Sri N. Gopalan, Manager of the Asian Paints, was present. From the premises, certain loose parchas were seized. On the basis of loose parchas, it was inferred that the goods had been got manufactured by the petitioner from M/s. Asian Paints India Limited on the basis of the orders of M/s. Hero Honda Motors Limited, M/s. Honda Scooters and Honda Cars and the same had been dispatched to Gurgaon depot (Haryana) for delivery to such parties; therefore, the movements of such goods from the State of U.P. to Gurgaon were in pursuance of prior contract of sale. On the basis of such material, the assessing authority has sought the approval from the Additional Commissioner, Grade I, Trade Tax, Ghaziabad Zone, Ghaziabad, to reopen the proceeding beyond the normal period of limitation. The Additional Commissioner, Grade I, Trade Tax, Ghaziabad Zone, Ghaziabad after giving opportunity of hearing has granted the approval vide order dated August 18, 2007 to reopen the proceeding under section 21(1) of the Act for the assessment year 2001-02 both under the U.P. Trade Tax Act and under the Central Sales Tax Act. In pursuance thereof, the Deputy Commissioner (Assessment) 4, Trade Tax, Ghaziabad, issued the notices under section 21(1) of the Act.

(3.) Heard Sri R.R. Agrawal, learned counsel for the petitioner and Sri U.K. Pandey, learned standing counsel.