STATE OF U P Vs. JAIPURIA BROTHERS

JUDGEMENT

(1.) This is a special appeal against the order of a learned Judge allowing the respondent's petition under Article 226 of the Constitution of India and issuing a writ of mandamus to the Sales Tax Officer, Kanpur, and the Commissioner of Sales Tax, Uttar Pradesh, not to proceed to assess the respondent to sales tax in respect of its turnover for the year 1948-49 under Section 21 of the U.P. Sales Tax Act.

(2.) The respondent, Messrs Jaipuria Brothers Limited, stated in its writ petition that it was the sole selling agent of the Swadeshi Cotton Mills Co., Ltd., Kanpur, the manufacturer, with effect from 5th of October, 1946; that it sold cloth and yarn for and on behalf of the said manufacturer ; that it held a licence under Section 6 of the U.P. Sales Tax Act, 1948 (hereinafter called the Act); and that considering itself to be an agent and not a dealer within the definition of that term in Clause (c) of Section 2 of the Act did not file any return for the assessment year 1948-49 under the Act.

(3.) The Sales Tax Officer, Kanpur, issued a notice to the respondent under Section 21 of the Act on the 20th of March, 1952, and in spite of the protest of the respondent that it was not a dealer, assessed the respondent to sales tax on the 31st March, 1952. The assessment was based on the estimated turnover of the respondent's business which had escaped assessment for the assessment year 1948-49. The respondent appealed against that assessment order to the Judge (Appeals) Sales Tax, Kanpur. The appeal was allowed and the assessment order was annulled. Against this order of the Judge (Appeals) Sales Tax, Kanpur, the Commissioner of Sales Tax, U.P., filed a revision before the Judge (Revisions) Sales Tax, U.P. By order dated 28th of March, 1955, the Judge (Revisions) Sales Tax allowed the revision application, set aside the assessment order of the Judge (Appeals) Sales Tax and remanded the case for fresh assessment after proper scrutiny of the account books in the light of the observations made in his order.