BRIGHT TECHNOLOGIES Vs. COMMISSIONER COMMERCIAL TAX

JUDGEMENT

(1.) The present revision has been filed by the assessee against the order of the Commercial Tax Tribunal, Varanasi dated 27.03.2019 passed in Second Appeal No. 28 of 2019 for A.Y. 2015-16 (U.P.) with respect to the proceedings under Section 48(5) of the U.P. Value Added Tax Act, 2008. The Tribunal has set aside the order of the first appeal authority dated 30.01.2018 and remitted the matter to the assessing officer to pass a fresh order in light of the directions issued by the Tribunal.

(2.) In brief, the assessee is engaged in trading in readymade garments etc. During a survey conducted at the business premises of the assessee on 02.01.2016, 18 bundles of readymade garments were found. Those were claimed to be referable to tax invoices of the dates 07.12.2015 to 27.12.2015, issued by M/s. A.N. Enterprises another registered dealer of Kanpur. The enquiries made by the Special Investigation Branch ('SIB' in short) of the revenue department revealed that the registration of M/s. A.N. Enterprises at Kanpur had been cancelled with effect from 01.01.2016. In such circumstances, the goods found packed in 18 bundles were seized and later released upon deposit of security. By notice dated 03.06.2016, penalty under Section 48 (5) was proposed to be imposed, to which the assessee replied, and by order dated 17.06.2016, the explanation furnished by the assessee was rejected and a penalty of Rs. 2,25,000/- was imposed on the reasoning that the disclosed selling dealer, M/s. A.N. Enterprises was not a bona fide dealer; the TIN of the said M/s. A.N. Enterprises had been cancelled with effect from 01.01.2016 and; selling dealer had not filed its regular returns of turnover.

(3.) The assessee carried the matter in appeal before the first appeal authority. It also appears that the assessee produced the tax invoices against which it has made purchases from M/s. A.N. Enterprises, its purchase ledger and further claimed that it had made payment through banking channels. The first appeal authority allowed the appeal and deleted the penalty.