Purchase tax levy upheld where assessee failed to prove prior tax payment; absence of Form III alone was not decisive.

Tax on purchases was upheld where the disclosed turnover had been rejected and best judgment assessment had been made, leaving the purchase tax levy as the only surviving issue. The assessee was required to produce proof that tax had already been paid on the purchases, and it failed to furnish the necessary materials and details. Mere non-issuance of Form III was not decisive by itself; the decisive factor was the absence of evidence supporting prior tax payment. In those circumstances, the Tribunal's finding was justified and the challenge to the levy failed.

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Issues: Whether the assessee was liable to tax on purchases on the ground that tax had already been paid, and whether absence of Form III by itself negated the levy.

Analysis: The disclosed turnover having been rejected and best judgment assessment having been made, the only surviving challenge was to the imposition of tax on purchases. The assessee failed to furnish proof that tax had been paid on the purchases. The mere non-issuance of Form III was not, by itself, decisive, but the assessee carried the duty to produce the materials and details supporting the claim of prior tax payment. In the absence of such proof, the finding of the Tribunal was justified.

Conclusion: The tax levy on the assessee was upheld and the challenge failed.

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