Perverse factual finding on tax collection cannot stand when vital documentary evidence is ignored.

A finding that an assessee collected Central sales tax cannot stand where the Tribunal ignores sale contracts, buyers' certificates, invoices and correspondence that were relied on to deny collection. The record must contain supporting evidence for the conclusion reached; reliance on prior conduct or earlier voluntary payments is insufficient if the material documentary evidence is not addressed. A fact-finding conclusion reached without evidence, or by overlooking relevant evidence, is perverse in law. On that basis, the referred question was answered in favour of the assessee and the Tribunal's conclusion was set aside for lack of evidentiary support.

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Issues: Whether the Tribunal's finding that the assessee had collected Central sales tax was sustainable when the relevant documentary evidence was ignored and the finding was said to be without evidence.

Analysis: The question referred under section 22(1) of the Punjab General Sales Tax Act, 1948 read with section 9(2) of the Central Sales Tax Act, 1956 turned on whether the Tribunal had some evidence to hold that the assessee had collected tax during the relevant period. The record showed that the assessee had asserted payment under protest, had relied on sale contracts, buyers' certificates, invoices and correspondence, and had specifically contended that no Central sales tax was collected. The Tribunal, however, did not deal with the material documents and relied mainly on prior conduct and voluntary payment in earlier periods. A finding reached by ignoring vital and relevant evidence, or without identifying supporting evidence, is legally unsound and can be treated as perverse.

Conclusion: The finding that the assessee failed to prove non-collection of tax was unsupported by evidence and could not stand; the reference was answered in the negative, in favour of the assessee.

Final Conclusion: The Tribunal's conclusion was set aside for want of evidentiary support, and the assessee succeeded on the referred question.

Ratio Decidendi: A finding of fact that is reached without evidence or by ignoring material and relevant evidence is perverse and cannot be sustained in law.

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