COMMERCIAL TAXES OFFICER Vs. CHIRANJILAL LAXMINARAYAN

JUDGEMENT

(1.) BY this revision petition, the Tax Board has rejected the Revenue's appeal upholding the order of the Deputy Commissioner (Appeals) holding that merely on the basis of entries in the check-post record showing the movement of goods in question from the end of assessee to other parties outside the State, the sales in question could not be held to be inter-State sales exigible to Central sales tax at the hands of assessee. Both the appellate courts have concurrently held that the assessing authority failed to bring any material on record which could establish taxable inter-State sales in the hands of the respondent - assessee. The assessing authority held the alleged movement of goods on the basis of check-post entries to be the inter-State sales merely on the ground that the assessee failed to produce the books of account and other relevant record during the assessment proceedings and rebut the allegations against him, which were put to him, on the basis of said check-post entries.

(2.) IT is well-settled that the burden of proof lies upon the Revenue, i. e. , the assessing authority to establish taxable sales in the hands of the assessee before a tax can be imposed. Such burden having not been discharged by the assessing authority, the appellate authorities were right in holding that merely on the basis of such check-post entries, the movement of goods could not be taxed as inter-State sales in the hands of assessee. Even, if the assessee failed to produce the books of account, the assessing authority could gather material from other sources to prove such taxable inter-State sales like enquiry from purchasing dealers of destination station, etc. , but nothing of this sort was done by the assessing authority. I do not see any error in these appellate orders and since the assessing authority failed to bring any material on record to establish the taxable inter-State sales in the hands of the respondent - assessee, the same could not be taxed. Therefore, I do not find any force in the revision petition. The same is accordingly dismissed. .