CONTINENTAL CEMENT CO Vs. COMMISIONER TRADE TAX

JUDGEMENT

(1.) These five revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") are directed against the orders of Tribunal dated 21.08.2004 relating to the assessment years 1992-93 (U.P.), 1993-94 (U.P.), 1994-95 (U.P.). 1994-95 (Central) and 1995-96 (U.P.) respectively arising out of proceedings under Section 21 of the Act.

(2.) The dealer was carrying on the business of manufacture and sales of Cement. It was holding Eligibility Certificate under Section 4-A of the Act for the period 1.9.1992 to 30.9.2002 for the period of 8 years or to the extent of Rs. 1,12,68,175/- which ever is earlier. Exemption limit had been expired in the year 1991, therefore, for the assessment year 1992-93, onward applicant Unit was not under the exemption and manufactured Cement was liable to tax. Applicant for all the aforesaid years, disclosed the turnover and admitted liability of tax which have been assessed to tax in the original assessment proceedings. Thereafter, Assessing Authority received a report of TTO. (SIB) (hereinafter referred to as TTO (SIB) and on the basis of which formed opinion that there was assessed assessment and therefore, it appears that permission was sought from the Additional Commissioner for extension of time under the proviso of Section 21(2) of the Act vide letter dated 12.9.2000. Proposal was accepted and approval was granted by the Additional Commissioner on 23.9.2000. Thereafter, notices under Section 21 of the Act were issued for all the aforesaid years on 30.9.2000 to reopen the assessments. Notices under Section 21 of the Act were duly served upon the applicant. Thereafter a detailed Show Cause Notices were issued which were replied. In the reply, applicant challenged the validity of initiations of proceedings under Section 21 of the Act and also made submissions on various queries made in the Show Cause Notices. Assessing Authority, however passed the assessment order under Section 21 of the Act on 15.3.2001 and accepted turnover have been assessed. Applicant filed appeals before the Deputy Commissioner (Appeals), Trade Tax, Muzaffarnagar, which have been dismissed provide order dated 30.4.2001 for the assessment year 1992-93 and vide order dated 05.10.2000 for the other assessment years. Applicant filed five separate appeals before the Tribunal. The Tribunal vide impugned order dated 21.8.2004 allowed the appeals in part for the assessment year 1992-93. The Tribunal has upheld the validity of initiation of proceedings under Section 21 of the Act and estimate of suppressed sales of Cement at Rs. 50 Lacs. The Tribunal however, reduced the estimate of suppressed purchases of Lime Stone from unregistered dealer to Rs. 6 Lacs. Appeals relating to other assessment years came up for consideration before the Tribunal subsequently. The Tribunal vide impugned order dated 21.8.2004 allowed the appeals and set aside the order of the Appellate Authority and remanded back the case to the Assessing Authority for afresh assessment in the light of observations made therein. Tribunal has up held the validity of the initiation of proceedings under Section 21 of the Act, however on the estimate of turnover, matter has been remanded back to the Assessing Officer.

(3.) Heard Sri R.R. Agarwal, learned Counsel for the applicant and Sri U.K. Pandey, learned Standing Counsel.