V K ENTERPRISES Vs. COMMISSIONER TRADE TAX

JUDGEMENT

(1.) Present revision under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the "Act") is directed against the order of the Tribunal dated 23rd July, 2005 relating to the assessment year. 1999-2000 under the Central Sales Tax Act.

(2.) Brief facts of the case-giving rise to the present revision are that the assessment order dated 19th February, 2002 was passed under Section 9(2) of the Central Sales Tax Act for the aforesaid assessment year in which the assessing authority has rejected the books of account and enhanced turnover. Assessing authority has also levied the higher rate of tax in absence of Form C. Against the said order, applicant filed appeal before the Deputy Commissioner (Appeals) Trade Tax, Allahabad. Before the Deputy Commissioner (Appeals) the applicant filed two Forms C in original which were claimed to have been obtained after passing the assessment order. On the strength of Form C, benefit of concessional rate of tax was claimed. Assessing officer accepted the two forms-C under Section 12 -B of the Act and directed the assessing authority to make enquiry and verification in respect thereof. For this purpose, the case has been remanded back to the assessing officer. Appellate authority, however, confirmed the rejection of the books of account. When the matter came up for consideration before the assessing authority for the examination of Form-C, which were filed before the assessing authority, the applicant appears to have challenged the rejection of the books of account and enhancement of the turnover. It appears that show cause notice in this regard has also been issued by the assessing authority, which was duly replied. Assessing authority, however, rejected the books of account and also upheld the enhancement of the turnover, which was made earlier. Assessing authority, however, allowed the benefit of the concessional rate of tax on the basis of Form C. Being aggrieved by the assessment order, applicant filed appeal before the Joint Commissioner (Appeals) , Trade Tax, Allahabad which has been dismissed vide order dated 31s1 March, 2004. Applicant further filed second appeal before the Tribunal, which has been rejected by the impugned order. Before the Tribunal, the applicant has challenged the rejection of the books of account and the enhancement of the turnover. Tribunal has rejected the appeal on the ground that the appellate authority vide its order dated 26th August. 2002 has upheld the rejection of the books of account and the matter was remanded back to the assessing authority only for limited purposes to verify and allow the benefit of two Forms C which were filed before the appellate authority Thus, the issue with regard to the rejection of the books of account has become final inasmuch as the order of the Deputy Commissioner (Appeals) , Trade Tax. Allahabad dated 26th August 2002 confirming the rejection of the books of account could not be challenged. Tribunal held that the assessing authority has no jurisdiction to examine the issue with regard to the rejection of the books of account.

(3.) Heard learned Counsel for the parties.