COMMISSIONER OF SALES TAX Vs. SHARAT QUIRIO STORE

JUDGEMENT

(1.) This revision is directed against an order dated 22nd January, 1986, passed by the Chairman, Sales Tax Tribunal, U. P., for the assessment year 1978-79 in respect of the proceedings under the U. P. Sales Tax Act (hereinafter referred to as the Act) for that year.

(2.) During the assessment year in question the assessee dealt in brassware and E. P. N. S. ware. A perusal of the impugned order passed by the Tribunal shows that the only reason for discarding the book version of the accounts of the dealer was a parcha which was recovered in the survey dated 10th September, 1979. There is no dispute between the parties that this parcha relating to the period 12th January, 1979, to 30th January, 1979, related to a karigar known as Dulha Jaan. It is the admitted case of the parties that the modus operandi of the dealer was that it used to issue raw materials to its karigars and received finished goods from them. Accordingly for issuing those raw materials to the karigars, an entry has been made in the kargar register. After receipt of the finished products, an entry of the receipt of the goods has again got to be made in the kargar register and the wages so received by the karigars have got to be made in the accounts of the assessee. From a perusal of the impugned order of the Tribunal the facts as they emerge are that in so far as the material in which parcha No. 5 was recovered on 10th September, 1979, is concerned, the relevant entry with regard to the issue of raw materials and the receipt of finished products does find place in the kargar register of the assessee. The department was, however, labouring under an erroneous impression that such issue of raw materials is to find place in the account books of the assessee. That is not the correct method of recording the transaction. The method of maintaining the account books by the assessee in the manner in which it had done in the present case has not at all been disputed by the department.

(3.) Therefore, the controversy that was before the Tribunal was as to whether the assessee is liable to pay tax on the aforesaid raw materials so issued to the tune of Rs. 46,000. The Tribunal has, however, held that the said transaction amounted to a sale under the Act.