COMMISSIONER OF SALES TAX Vs. MODI INDUSTRIES LTD

JUDGEMENT

(1.) This revision is directed against the order dated 21st February, 1986, passed by the Sales Tax Tribunal, Ghaziabad. For the assessment year 1971-72 original assessment order was passed by the assessing authority on 25th March, 1976. Immediately on the next day a notice dated 26th March, 1976, under Section 21 of the U. P. Sales Tax Act (hereinafter referred to as the Act) was issued to the assessee. The assessee challenged the validity of this notice right up to the Tribunal. The Tribunal has recorded the following findings of fact:

(2.) That besides the above no other evidence or material was produced before the Tribunal to show any other basis for initiating proceedings under Section 21 of the Act.

(3.) Under the circumstances the Tribunal recorded a finding of fact that the notice under Section 21 of the Act was issued only for the purposes of verification of certain information which was available with the Sales Tax Officer on the date of the issue of the notice. After recording the aforesaid finding of fact, the Tribunal, on the basis of two decisions of this Court in General Electric Company of India Ltd. v. Sales Tax Officer, Kanpur [1974] 33 STC 108 and M.L. Shukla & Co. v. Sales Tax Officer, Kanpur 1981 UPTC 396 which took the view that the proceedings under Section 21 of the Act cannot be initiated for the purposes of verification of the information available with the sales tax authorities, has after following the said authorities, held that the initiation of proceedings under Section 21 of the Act was without jurisdiction.