JAI JAGDAMBA SCRAP SUPPLIERS LTD. THROU ITS DIRECTOR Vs. COMMERCIAL TAX TRIBUNAL LUCKNOW BENCH-1 LUCKNOW

JUDGEMENT

(1.) Heard Sri Vaibhav Pandey, learned counsel for the revisionist as well as learned Standing Counsel for the Revenue.

(2.) Present revision under Section 58(1) of the U.P. Value Added Tax (hereinafter referred to as "the VAT Act") has been preferred against the judgment and order dated 16.10.2014, passed by the Commercial Tax Tribunal, Bench-I, Lucknow (hereinafter referred to as "the Tribunal") in Second Appeal No. 383 of 2013 for the assessment year 2010-11, whereby the Second appeal of the assessee against the order dated 28.06.2013 of the Additional Commissioner, Grade-2 (Appeals) has been rejected.

(3.) The controversy leading to the present revision in brief is that the revisionist is a registered dealer under the VAT Act and is carrying on the business of iron and steel (iron scrap etc.) and on an inspection/survey conducted by the Income Tax Department on 06.04.2010, a stock valuing Rs.27,00,000/- was found to be excess then the stock declared by the assessee. Subsequently, on 28.06.2010, a survey was also conducted by the Special Investigation Branch of the Commercial Tax Department. In the said survey also according to the stock register the revisionist was supposed to have stock of 1097MT but actually the stock of 1083 MT was found. The difference in the stock lead to presumption that the revisionist was dealing in Iron Scrap for selling Iron Scrap and finished products without making entry into its books of account and therefore was involved in evasion of Trade Tax. Taking into account the aforesaid facts an assessment order was passed on 31.12.2011, levying tax to the tune of Rs.1,36,17,062/- on the revisionist.