MAHADEO TRADERS Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) The present revision has been preferred against the order dated 14th May, 1986 passed by the Sales Tax Tribunal, U.P., Allahabad Bench I, Allahabad under Section 11 of the U.P. Sales Tax Act.

(2.) The facts, in brief, of the case are that the applicant is a partnership firm known as M/s. Mahadeo Traders (hereinafter referred to as the applicant-firm) and is carrying on the business admittedly from 2nd September, 1985. The applicant-firm consists of seven persons and it deals in kerana, etc. The applicant applied for registration under the U.P. Sales Tax Act and it did not file any application for registration under the Central Sales Tax Act. The applicant also declared that the applicant-firm shall be dealing in the goods within U.P. The applicant also filed a return for the month of September on 29th October, 1985 and according to that return no tax liability is created on the applicant-firm.

(3.) The question involved for adjudication in this case is as to whether the demand of security on the facts and the circumstances of the case under Section 8-C(3) of the U.P. Sales Tax Act from the applicant-firm is justified or not.