SWADESHI UDYOG Vs. TRADE TAX OFFICER AND ANOTHER

JUDGEMENT

(1.) By means of this present writ petition, the petitioner is challenging the initiation of proceedings under section 21 for the assessment year 1995-96. The petitioner was carrying on the business of purchases and sales of mustard oil. During the year under consideration, the petitioner claimed to have purchased mustard oil within the State of U.P. for Rs. 1,12,63,062. Mustard oil was liable to tax at the point of manufacturer or importer. The petitioner claimed exemption on the sale of the mustard oil, on the ground that the purchases were made within the State of U.P. and the petitioner was neither a manufacturer nor an importer. The assessing authority has passed original assessment order under rule 41(8) on February 5, 1998 and on the examination of the books of account and the list of purchases, granted the exemption on the sales of mustard oil. The proceedings under section 21 have been initiated on the ground that in the assessment year 1997-98 it was found that certain purchases were not verifiable and, therefore, inference has been drawn that the purchases of mustard oil for the year under consideration were also not verifiable and accordingly the notice under section 21 was issued.

(2.) The learned counsel for the petitioner submitted that there is no material for the year under consideration for coming to the conclusion that the purchases were not verifiable and, therefore, in the absence of any material, initiation of proceedings was not justified.

(3.) We have called upon Shri U.K. Pandey, learned standing counsel, to disclose the material for the year under consideration on the basis of which the belief has been formed that the purchases were not verifiable. No such material has been disclosed. He only submitted that since in the assessment year 1997-98, some of the purchases were found non-verifiable, therefore, the inference has been drawn for the year under consideration also.