- (1.) Present revision under Section 11 of UP. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 18th January, 2006 for the assessment year 1998-99.
(2.) The following questions have been raised in the present revision: (A) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified in upholding the rejection of account books on invalid grounds particularly when no defect was found in account books (B) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified in determining the turnover of different goods without assigning any basis for determination thereof (C) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified in determining the turnover of "Flavoured Milk" and imposing tax thereon when the Milk is. exempted from tax by virtue of Notification No. ST-II 7038/X/dated 31.01.1985 contrary to view taken by this Hon'ble Court in the case of CS. T. v. Neera Drinks 1999 UPTC, 1130 (D) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified in treating 'Martha and Lassi' as one and the same commodity and imposing tax as per Notification No. Kani 2-11/XI dated 15.01.2000 when the 'Mattha' being basically Milk is exempted from tax as per Notification No. ST-II-7038/X dated 31.01.1985 (E) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified in determining the turnover of sweet meats made from Khoya despite the facts that there is no material on record to show that such sweetmeats were sold by the applicant
(3.) The applicant is a unit of Provincial Cooperative Dairy Federation, Lucknow and is duly registered under U. P. Trade Tax Act, 1948. Applicant was carrying on the business of manufacture of butter, ghee paneer, curd, mattha and purchase and sale of milk and claimed to have maintained the books of account in the regular course of business. During the year under consideration, applicant had disclosed the taxable turn over at Rs. 1,81,67,975/-. Assessing authority had rejected the books of account and estimated the taxable turn over at Rs. 2,56,17,500/-. First appellate authority confirmed the turn over estimated by the assessing authority. In second appeal, Tribunal has confirmed the rejection of books of account but has reduced the taxable turn over to Rs. 2,27,15,000/- as against the admitted taxable turn over at Rs. 1,18,67,975/-. Tribunal has confirmed the rejection of books of account for the following reasons: A) Against Form 31 No. F.E.E. 1820755 milk crate for Rs. 2,49,400/- was imported while in the list of Form-31 filed during the course of assessment, the import of Rs. 1,50,000/- had only been shown. B) In the list of consumption of Forms-31 there was no mention of details of 9 Form-31 Nos. 050648, 1820757, 1820758, 1820759, 3080851, 3080852, 3080853, 3080854 and 3080855 whereas against these declaration forms goods had been imported. One Form-31 was shown cancelled but no detail has been furnished in this regard. C) 855 bags of skimmed milk powder filled with 265 kg. was shown transferred to other unit for short period but no evidence of its return was furnished. Tribunal has further confirmed the levy of tax on the turn over of flavoured milk estimated at Rs. 5,000/- and has also treated the mattha as lassi and levied the tax @ 5%. Tribunal has also confirmed the estimate of turn over of sweet meat made of khoya at Rs. 3 lacs while according to the applicant sweet meat was not prepared and sold.;