LAWS(ALL)-1982-2-10

MOHD ISHAAQ Vs. COMMISSIONER OF SALES TAX

Decided On February 26, 1982
MOHD.ISHAAQ Appellant
V/S
COMMISSIONER OF SALES TAX Respondents

JUDGEMENT

(1.) In this revision application under Section 11(1) of the U. P. Sales Tax Act by the dealer, the controversy is about the question whether the sale of timber, said to have been imported by the dealer and then sold, was liable to tax in his hands. The case of the dealer is that he had not imported any timber during the year and all the timber sold by him had been purchased by him within the State.

(2.) The dispute relates to the year 1973-74. The dealer had not accepted liability for payment of any tax on sale of timber as he had imported none. The assessing authority, after rejecting this stand of the dealer, estimated the taxable turnover at Rs. 61,000. In appeal, the taxable turnover was reduced to Rs. 25,000 by the Assistant Commissioner (Judicial), Sales Tax, which was affirmed by the Sales Tax Tribunal, Bareilly.

(3.) It is not in dispute that during the relevant year sale of timber was taxable in the hands of the importer, and no tax was chargeable on timber purchased within the State and sold by any dealer. A perusal of the order of the Tribunal shows that it was, like the assessing authority, under an impression that the dealer had to establish by cogent evidence that the timber sold by him was not imported. Reliance has been placed by the Tribunal in this respect upon Section 12-A of the U. P. Sales Tax Act for that assumption. The approach of the authorities, including the Tribunal, is not sound in law.