COMMISSIONER TRADE TAX Vs. RASTRIYA ADYOGIK SANSTHAN

JUDGEMENT

(1.) These two revisions are against the common order dated 28th of May, 1997 passed by the Sales Tax Tribunal in two second appeal Nos. 31 of 1994 and 34 of 1994 for the assessment year 1987-88 (U.P. and Central).

(2.) The dealer opposite party carried on the business of manufacture and sale of cooler, generator and diesel engine etc. It disclosed the gross turnover of Rs. 5,79,700/- and net turnover as nil. No tax liability was admitted by the dealer in view of the notification No. 7037/X-71231 dated 31st of January, 1985. The benefit of the aforesaid notification was denied by the Assessing Officer on the ground that the black- smithy work was carried on by the dealer by involving the use of power. The dealer opp.party is registered under the Khadi and Village Industries Board. Under the aforesaid notification the turnover of persons holding the certificate under Khadi and Village Industries Board was conditionally exempted. The condition to grant exemption was that the black-smithy work should be done without involving the use of power. According to the Assessing Authority the dealer opp.party used the power in black-smithy and as such was not entitled to avail the benefit under the aforesaid notification. In appeal, the Assistant Commissioner (Judicial) by the order dated 22nd of July, 1996 set aside the assessment orders and remanded the matter to the Assessing Authority for reconsideration with certain directions. It was found by the Appellate Authority that in the certificate dated 31st of October, 1987 generator was found at the business premises alongwith certain other machineries which could be operated only with the help of power. Further direction was that in the survey dated 3rd of July, 1987 a diary (note book) was seized by the Surveying Officer. But the entries in the said diary were not taken into account while framing the assessment. No enquiry was made by the Assessing Officer with regard to the seized diary and as such the matter is required to be investigated upon with respect to the seized diary. The First Appellate Authority was of the view that whether the dealer opp.party has an electric connection or not, is wholly immaterial as a generator was found there.

(3.) Aggrieved against the aforesaid order the dealer opp.party filed the aforesaid two second appeals before the Tribunal. The Tribunal by the order under revision has allowed both the appeals and held the net turnover as nil.