CONTINENTAL CEMENT FACTORY Vs. COMMISSIONER, TRADE TAX

JUDGEMENT

(1.) THE present revision under Section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as 'the Act') is directed against the order of the Tribunal dated March 29, 2006 relating to the assessment year 1999 -2000.

(2.) THE applicant was engaged in the business of manufacture and sales of cement. The assessing authority passed the original assessment order under Section 7 read with Rule 41 on February 28, 2001. It appears that thereafter proceeding under Section 21 of the Act was initiated after the expiry of two years. After giving opportunity of hearing to the applicant, the assessing authority passed the assessment order on June 25, 2004 estimating the suppressed sales. Aggrieved by the order passed under Section 21 of the Act, the applicant filed an appeal before the Joint Commissioner (Appeals), Trade Tax, Saharanpur. The Joint Commissioner (Appeals), Trade Tax, Saharanpur vide order dated August 2, 2004 allowed the appeal, set aside the order passed under Section 21 and remanded back the matter to the assessing authority for fresh adjudication. Being aggrieved by the order of the Joint Commissioner (Appeals), Trade Tax, Saharanpur, the applicant filed an appeal before the Tribunal, who vide order dated March 29, 2006 dismissed the appeal.

(3.) LEARNED counsel for the applicant submitted that before the Tribunal it was submitted that the initiation of proceeding under Section 21 of the Act was barred by limitation inasmuch as the notice was issued on July 21, 2002, while the permission under the proviso to Section 21(2) of the Act was given by the Additional Commissioner on August 23, 2002. It was also submitted that at the time of issue of notice, there was no material to form a belief about the escaped assessment, therefore, the initiation of proceeding under Section 21 of the Act was without jurisdiction. It was also submitted that before the issue of notice reasons should be recorded in view of the circulars dated September 2, 2000 and October 3, 2001 issued by the Commissioner of Trade Tax. He submitted that the above disputed issues were submitted before the first appellate authority as well as before the Tribunal but the same have not been adjudicated and, thus the order of the Tribunal is vitiated.