Court No. - 33 Case :- SALES/TRADE TAX REVISION No. - 168 of 2002 Petitioner :- M/S R.K. Industries, Attarsuiya Allahabad Respondent :- Commissioner Of Trade Tax, U.P. Lucknow Petitioner Counsel :- Rakesh Ranjan Agarwal Respondent Counsel :- S.C. Hon'ble Bharati Sapru,J.
Heard learned counsel for the assessee and learned
Standing Counsel for the State.
This revision has been filed by the assessee under
Section 11 of the U.P. Trade Tax against the order
of the Tribunal dated 4.1.2002 by which the
assessment has been made for the assessment year
1996-97. The questions of law referred to are
hereunder :-
(1) Whether on the facts and circumstances of the case the learned Tribunal
being the last fact finding court omitted to consider that the applicant had
already closed the business vide application no.725944 dated 11.5.1996.
(2) Whether on the facts and circumstances of the case the Trade Tax Tribunal
not to consider the Trading account filed before the Assessing authority
showing that raw material of Rs.95345.65 was tax paid opening stock and the
same was sold at a sum of Rs.98550/- after closure of the firm and no
manufacturing activity was done, therefore the assessment of self
manufactured Pan Masala is without any basis.
(3) Whether on the facts and circumstances of the case the Tribunal was
correct that when the raw material purchased by the applicant within U.P.
from registered dealer and sold as such without any manufacturing activity
after the closure of the business, sale made by it not except under Section 3(a)
of the Act.
(4) Whether on the facts and circumstances of the case the learned Tribunal
being the last fact finding authority was correct not to declare the applicant as
non assesseable especially when there is a reference of closing stock of
Rs.95,345.65 is the assessment order for Assessment Year 1995-96.
The assessee has placed on record an application
showing the closure of the business with effect from
11.5.1996. The assessee states that he has done no
business in that year and had shown a closing stock
of raw-material to be worth Rs.95,345/-, which was
sold as it is. The respondents have assessed the
assessee on the basis of this and have treated this to
be the goods manufactured in the year 1996-97.
Learned Counsel for the assessee has argued that
they placed the entire books and material before the
Tribunal to show that they did not do any
manufacturing business in the year 1996-97 and no
adverse material was found against the assessee,
which would in any manner establish that the
assessee was carrying on his business in the year
1996-97.
In view of the facts stated above, the contention of
the learned Counsel for the assessee that the order
passed by the Tribunal is vitiated as it is wholly on
the basis of presumptions is correct. The order of
the Tribunal dated 4.1.2002 is set aside. The tax
imposed on the assessee is also set aside.
In case the assessee has made any deposits in
pursuance of any order passed by the Tribunal or
the first appellate authority, the same may be
refunded to him .
This Revision is allowed.
Order Date :- 22.1.2010
S.P.