Burden of proof for second sales under sales tax law requires reasonable verification of furnished purchase particulars.

Section 7-A of the Andhra Pradesh General Sales Tax Act places the burden on the dealer to show that a sale or purchase is not liable to tax or is taxable at a reduced rate. The assessee discharged that burden by producing detailed purchase particulars, including seller details, bill numbers, dates, quantities and amounts, to support the claim that the goods were second sales. Once such primary material was furnished, the assessing authority was required to verify its correctness if it doubted the claim. Because no effective enquiry or rebuttal was made, the Board of Revenue's contrary view was held erroneous and the revisional assessment was unsustainable.

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Issues: Whether the assessee discharged the burden under section 7-A of the Andhra Pradesh General Sales Tax Act to show that the goods had already suffered tax at the point of first purchase and were therefore not liable to tax as second sales.

Analysis: Section 7-A casts the burden on the dealer to show that the sale or purchase is not liable to tax or is taxable at a reduced rate. The assessee furnished detailed particulars of the purchases, including the names and addresses of the sellers, bill numbers, dates, quantities and amounts, and claimed that the goods were second sales. Once such primary information was produced, the assessing authority was required to verify its correctness if it doubted the claim. No effective enquiry or verification was made, and the material furnished by the assessee was not rebutted. On that basis, the Board of Revenue's view that the burden had not been discharged was held to be erroneous.

Conclusion: The assessee had discharged the burden under section 7-A, and the order revising the assessment was unsustainable.

Ratio Decidendi: Where the assessee furnishes sufficient particulars to show that the goods are not exigible as first sales, the assessing authority cannot reject the claim for want of discharge of burden without making reasonable verification of the information supplied.

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