DARSHAN AGROILS LTD Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) In this revision the assessment year in dispute is 1999-2000 under U.P. Trade Tax Act, 1948. The applicant-revisionist (hereinafter referred to as the "Dealer") is engaged in the business of manufacture and sale of edible oil, Tin and plastic containers. For the assessment year 1999-2000 the accounts were not accepted by Assessing Authority and he proceeded to make best judgment assessment vide order dated 19.03.2002 determining Rs. 71,07,413.55 tax under the State tax statute and Rs. 29,500/- under Central Act. There against the Dealer's First Appeal Nos. 406/2 and 407/2 were dismissed by First Appellate Authority vide order dated 13.06.2002 but the Second Appeal Nos. 295/02 and 294/02 were allowed vide judgment dated 04/13.07.2004 passed by the Trade Tax Tribunal, Aligarh Bench, Aligarh and the matter was remanded to Assessing Authority for predetermination of tax liability. The Assessing Authority passed order on 21.07.2005 on the basis of best judgment assessment and, there against revisionist's First Appeal Nos. 633/2005 and 634/2005 was partly allowed and the tax liability was reduced to Rs. 63,60,346/- under the Provincial statute and Rs. 14,074/- under Central statute. There against, Revenue preferred second appeals which have been allowed by impugned order dated 16.05.2007. The central dispute relates to alleged purchase of oil and tin containers of Rs. 16,76,94,702.75 from the alleged registered Dealers. The Assessee claimed to have purchased mustered oil worth Rs. 16,04,41,948/- from M/s. B.S. Enterprises, 422 Sewanagar, Ghaziabad and blank tin containers worth Rs. 28,14,550/-. Similarly, from M/s. K.S. Traders, Babu Market, Atta Chowk, Noida he claimed to have purchased mustered oil worth Rs. 60,46,868/- and tin containers worth Rs. 9,42,025/-. A third purchase of mustered oil of Rs. 12,05,888/- and tin containers of Rs. 3,51,400/- alleged to have been purchased from M/s. M.M. Enterprises 43/254 Shivhare Marg, Sikandra, Agra.

(2.) The purchase vouchers submitted by Assessee were sought to be verified from the concerned Companies. Notice was issued to Sri Rahul Kumar, Proprietor M/s. B.S. Enterprises, Ghaziabad but it returned with endorsement that Rahul Kumar is not residing at the address given, i.e., 193 L.I.G. Flats E. G.T.B. Enclave, Delhi and has left the house. It was also found that in the accounts of M/s. B.S. Enterprises, Ghaziabad, for the year in question, the firm has not disclosed any tax paid sale to in respect of transactions claimed by revisionist. Similarly, notice issued to Sri Madan Lal, Proprietor, M/s. K.S. Traders, Babu Market, Atta Chowk, Noida was returned with endorsement that he has also left premises. Further the aforesaid firm was found registered only upto 31.03.1998 and thereafter the firm had not submitted any returns. The third firm, i.e., M/s. M.M. Enterprises 43/254 Shivhare Marg, Sikandra, Agra, Proprietor, Sri Jitendra Kumar Sharma when sent notices, was returned by post office with endorsement of "wrong address" and when personal service was sought to be effected, it was informed that the firm was opened just a few days back and had now closed. The registration of said firm, thus was cancelled on 11.10.1999. The Assessing Authority did not accept claim of purchase of aforesaid items on the ground that Dealer failed to prove such purchases and it is also verified from the fact that transport companies through whom he claim to have transported goods were all found non-est and Fictitious.

(3.) Sri Piyush Agrawal, learned counsel for the revisionist, contended, when firms in question, wherefrom the Dealer has purchased goods, were found to have registered with Trade Tax Department, it was their responsibility to verify correctness of bill and vouchers issued by those firms and merely because the transport firms were found non-est or fictitious, the best judgment assessment by rejecting purchases claimed by Assessee ought not to have been made particularly when payment was made through account payee cheques. Reliance is placed on a decision of this Court in Kanha Vanaspati Ltd. v. Commissioner of Trade Tax,2002 UPTC 1.