Burden of proof in sales tax exemptions rests on the assessee where special knowledge and pending proceedings are involved.

Section 12-A of the U.P. Sales Tax (Amendment and Validation) Act, 1970 places on the assessee the burden of proving facts specially within his knowledge, including facts bringing the case within an exception or exemption under section 3-A. On that basis, the assessee had to prove that the goods sold were imported by him to claim exemption, and the failure to produce purchase vouchers or identify the selling dealers meant that burden was not discharged. The provision was also treated as retrospective in express terms and, in any event, procedural, so it applied to pending assessment proceedings. The challenge based on the earlier decision accordingly failed.

---

---

Issues: Whether the burden of proving that the goods sold by the assessee had been imported by him, and thus fell within the exception to taxation, lay upon the assessee under section 12-A of the U.P. Sales Tax (Amendment and Validation) Act, 1970, and whether that provision applied to the pending assessment proceedings.

Analysis: Section 12-A places the burden on the assessee to prove facts specially within his knowledge and specifically includes the existence of circumstances bringing a case within the exceptions and exemptions under section 3-A. The fact whether the match-boxes sold by the assessee were imported by him was within his special knowledge. Since he failed to produce purchase vouchers or give particulars of the selling dealers, the burden was not discharged. The provision was also retrospective by express legislative design and, in any event, was procedural in nature, so it applied to pending proceedings.

Conclusion: The burden of proof rightly rested on the assessee, and the challenge based on the earlier decision failed.

Final Conclusion: The applications were dismissed, leaving the assessment to tax undisturbed.

Ratio Decidendi: Where a taxing provision specifically places on the assessee the burden to prove facts within his special knowledge, that burden applies to pending proceedings and requires the assessee to establish entitlement to the exception or exemption claimed.

---