YASHWANT VARMA,J. - (1.) Heard Shri Aloke Kumar, learned counsel for the revisionist and Shri A.C. Tripathi, the learned standing counsel.
(2.) This revision has been preferred against the judgment rendered by the Tribunal on 15 September 2007. The assessee had, against the order of assessment, been granted relief by the first appellate authority which accepted its contention that it was not engaged in the sale and purchase or manufacture of articles so as to be exigible to tax under the UP. Trade Tax Act, 1948 [1948 Act]. The Tribunal has set aside this order by allowing the appeal of the Department in part and while restoring the order passed by the assessing authority, reduced the amount of tax, which according to the respondents had not been fully and faithfully disclosed.
(3.) The proceedings themselves emanate from a survey of the premises owned by the revisionist on 29 September 2005. During the course of the survey, the team is stated to have noted the existence of 55 sacks of chana, 3 sacks of chanadal, 30 kg of chuni and 4 sacks containing pouches and packages of mustard oil. Upon this discovery, the revisionist was called upon to show cause. In its reply, which was preferred before the assessing authority, it took the stand that it was not engaged in any transaction of sale and purchase and that it only undertakes the processing of flour and manufacture of oil on the basis of certain conversion charges which are paid to it for this purpose. The assertion stands duly reflected in paragraph Nos. 3, 5 and 13 of the reply which was submitted. The assessing authority, however, proceeded to hold that the very existence of products in such quantity would establish the assessee being engaged in the sale and purchase of commodities and willfully not making a candid and full disclosure with regard to its liability under the 1948 Act. Taking into account the quantity of articles which were found, it has proceeded to form an opinion that the revisionist was engaged in the manufacture of dal and other commodities. It has accordingly been assessed as such under the 1948 Act.;