High Court of Judicature at Allahabad
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The Commissioner, Trade Tax, U.P. Lkw. v. M/S Kailash Traders Muthiganj, Allahabad - SALES/TRADE TAX REVISION No. 757 of 2004  RD-AH 3114 (19 September 2005)
TRADE TAX REVISION NO.757 of 2004.
TRADE TAX REVISION NO.758 of 2004.
The Commissioner, Trade Tax, U.P., Lucknow. Applicant
M/S Kailash Traders, Mutthiganj, Allahabad. . Opp.party
Hon'ble Rajes Kumar, J.
Present two revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal dated 7th November, 2003 relating to the assessment years, 1996-97 and 1997-98.
The dealer opposite party (hereinafter referred to as "the dealer") was carrying on the business of food grain, oil seed etc. The books of the account have been accepted in the original assessment proceeding. In the assessment proceeding, the dealer had submitted Form 3-C (2) for the claim of exemption, which were obtained from its sellers. The said Form 3-C (2) were found correct and genuine and the exemption on the basis of the said Form 3-C (2) were allowed. It appears that the proceeding under section 21 of the Act have been initiated on the basis of the information received that the seller dealer had shown the lesser turnover than the amount mentioned in the Form 3-C (2). It was explained that so far as dealer is concerned, the purchases were made against 9 R and the Forms were received under the bonafide believe that they were genuine and issued by the department. The assessing authority has not accepted the plea of the dealer and rejected the claim of exemption against such Forms 3-C (2). However, first appeals filed by the dealer were allowed. Commissioner of Trade Tax filed appeals before the Tribunal, which have been dismissed. The Tribunal held that the books of account of the dealer have been accepted and the Form 3-C (2) against which the exemption have been claimed were found to be genuine, issued by the department and the purchases have been made against 9 R issued by the selling dealer duly recorded in the books of account and, therefore, the claim of exemption cannot be denied.
Heard counsel for the parties.
I do not find any error in the order of the Tribunal. The finding of the Tribunal is finding of fact. It is settled principle of law that unless the Form is found to be forged and has been obtained as a result of collusion between the parties, the claim of exemption cannot be denied to the dealer. Reliance is placed on the decisions in the case of M/S Nigotiya Dal Mills Versus CTT reported in (2004) 39 STR 366, M/S Bharat Iron Stores Versus CST reported in 1994 UPTC 130, M/S Indra Steel Private Ltd, Ghaziabad Versus CST reported in (1995) 21 STR 25, M/S Gaurav Traders Versus CST reported in (2002) 35 STR 116 and M/S Chunni Lal Parsadi Mall Versus CST reported in (1986) 4 STR 144 (SC).
In the result, both the revisions fail and are accordingly, dismissed.
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