H.N. Seth, J. - (1.) THE dealer Sri Harbilas carried on business in the name and style M/s. Ram Dayal Harbilas and dealt in vegetable ghee and some other commodities. For the assessment year 1957-58 he filed quarterly returns showing his gross and net turnover as Rupees 19,17,223 and Rs. 7,16,936 respectively. However, the books filed by the dealer disclosed a gross turnover of Rs. 19,08,223 which included the two amounts of Rs. 3,80,848 and Rs. 6,52,656 representing the turnover of vegetable oil purchased in Uttar Pradesh and that imported by the dealer from outside the State respectively. A scrutiny of the account books of the dealer further showed that he had, during the year, purchased vegetable oil worth Rupees 4,53,011 in Uttar Pradesh and had imported vegetable oil worth Rs. 6,39,978 from outside the State (bulk purchases being from Rohtak Industries Limited, Dalmianagar, Bihar). THE dealer further filed a list of four traders namely Babu Mian Ibrahim, M/s. Bharat Trading Company, M/s. Yogesh Kumar and Sons and M/s. Beni Ram, Harcharan Lal from whom he claimed to have purchased vegetable oil in Uttar Pradesh amounting to Rs. 3,83,206.
(2.) THE Sales Tax Officer, Allahabad, who was the assessing authority, made enquiries from respective Sales Tax Offices within whose jurisdiction the four parties from whom the dealer claimed to have made purchases of vegetable oil inside the State were said to be trading. Sales Tax Officer, Moradabad reported that the firm M/s. Bharat Trading Company was a bogus firm which had not been assessed to tax in respect of the transactions disclosed by the dealer. Sales Tax Officer, Kanpur reported that the proprietors of firm M/s. Yogesh Kumar and Sons were not traceable. THE firm M/s. Babu Mian Ibrahim made a representation to the Assistant Commissioner (Judicial) Sales Tax, Allahabad Range, through its Advocate, alleging that the dealer had presented fictitious bills from a number of vegetable ghee dealers in the State with a view to show that he had himself not imported corresponding quantity of vegetable ghee from outside the State. Amongst others, he disclosed the names of M/s. Bharat Trading Company and M/s. Yogesh Kumar and Sons, as the persons in whose names some of the fictitious bills had been obtained by the dealer. Eventually, the assessing authority, vide its order dated 13th September, 1958 did not find the returns submitted by the dealer, in so far as the turnover of vegetable oil was concerned, to be correct. He estimated the dealer's turnover of imported vegetable oil as Rupees Fourteen lacs and that of vegetable oil purchased within Uttar Pradesh as Rs. 50,000. In the process, he enhanced the gross turnover of the dealer to Rs. 23,24,780 and assessed him to sales tax amounting to Rs. 92,187. Being aggrieved the dealer went up in appeal before the Judge (Appeals) Sales Tax, Allahabad. The Judge (Appeals) found that before holding that the particulars supplied by the dealer with regard to the purchases of vegetable oil claimed to have been made by him from the four firms in Uttar Pradesh were not correct and that he had imported much larger quantity of vegetable oil from outside the State, the Sales Tax Officer did not afford proper opportunity to the dealer to substantiate his case. He also made certain general observations regarding the manner in which the Sales Tax Officer should have proceeded to appreciate the real nature of the transactions alleged to have been entered into by the dealer. Accordingly, vide his order dated 25th November, 1958, the Judge (Appeals) allowed the appeal filed by the dealer, he set aside the assessment order dated 13th September, 1958 and remanded the case for re-assessment after fresh enquiries and in the light of observations made by him.
(3.) WHILE the assessment proceedings, as a result of the remand order dated 25th November, 1958, were pending, certain material came to the notice of the assessing authority which according to it indicated that huge quantity of vegetable oil had been supplied by M/s. Rohtas Industries Limited, Bihar to Uttar Pradesh parties, including the dealer in question, and payment of sales tax on such transaction had been avoided as the same had not been shown by the respective dealers in their account books. Eventually, the assessing authority vide its order dated 16th August, 1962, acting on the basis of the material collected prior to the remand order as also that procured subsequent to it, enhanced the taxable turnover of the dealer to Rs. 52,95,608 and assessed him tax amounting to Rs. 3,13,918.70 p. The dealer questioned the assessment order dated 16th August, 1962 by filing an appeal before the Judge (Appeals) Sales Tax, Allahabad. He contended that while making fresh assessments in pursuance of the remand order dated 25th November, 1958 it was not open to the assessing authority to take any fresh material into consideration. According to him the assessing authority had to confine itself to the directions given in the remand order. The appellate authority rejected the submission and held that on remand the entire case became wide open and the Sales Tax Officer was fully within its jurisdiction in taking into account fresh material as well which came to his notice subsequent to the order of remand. However, as in its opinion, the assessing authority did not afford proper opportunity to the dealer for being heard on the question of import of vegetable oil from outside the State, he set aside the assessment order and remanded the case for making a fresh assessment.;