Case: Commissioner of Sales Tax Vs. Kumaon Tractors and Motors

IA No. 2application for substitution is grantedHeard the learned counsel for the partiesThe Commissioner of Sales Tax, U.P., Lucknow has challenged the order dated8 passed by the High Court of Judicature at Allahabad in Sales Tax Revisions Nos. 438, 439, 440 and 441 of 1990. By the impugned judgment and order the High Court set aside the order dated9 passed by the Sales Tax Tribunal, Bareilly Bench, Bareilly and held that the assessee was not a dealer, but was only entitled to receive commission on all sales in the State.

Reasoning: 8. From the facts discussed by the assessing authorities, it is apparent that the authorities arrived at a finding of fact that the assessee was a dealer by considering its books of accounts, bills issued by it and also Form C submitted by the assessee. The aforesaid documentary evidence produced by the assessee itself would reveal that the assessee was a dealer in tractors. The explanation given by the assessee that it was unaware of the law could hardly be accepted as there was no question of law involved in issuing bills, in preparing account books and submitting Form C. In any set of circumstances, it cannot be said that the order passed by the Sales Tax Tribunal affirming the orders passed by the authorities below was in any way illegal or erroneous. The High Court materially erred in relying upon the certificates dated1 and3 issued by the Uttar Pradesh Seeds and Tarai Development Corporation Limited for holding that the assessee was not a dealer, but was only entitled to have commission on such sales. It appears that the High Court ignored the provisions of Section 11 of the Trade Tax Act which confers limited jurisdiction to interfere with the order of the Tribunal only on the question of law, that too the said question of law is required to be precisely stated and formulated. Instead of deciding the question of law, the High Court simpliciter reappreciated the evidence and ignored the material documents maintained and produced by the assessee, that is, books of accounts, bills and Form C submitted by it. In this view of the matter, the impugned order cannot be sustained.