Exemption on purchases for ex-U.P. principals upheld; remand for despatch details held unsustainable.

Purchases made for ex-U.P. principals were accepted on the facts, and that finding supported the assessee's exemption claim under the U.P. Sales Tax Act. The Tribunal's remand for fresh consideration of despatch details was unjustified because the despatch aspect was not in dispute before the assessing authority and did not undermine the positive finding already recorded. The High Court held the remand order unsustainable, set it aside, and directed fresh disposal treating the purchases as made for ex-U.P. principals.

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Issues: Whether the assessee was entitled to exemption on purchases made on behalf of ex-U.P. principals, and whether the Tribunal was justified in remanding the matter for fresh consideration of despatch details despite recording a positive finding on that issue.

Analysis: The revision arose under section 11(1) of the U.P. Sales Tax Act. The Tribunal had already accepted the factual position that the purchases were made for ex-U.P. principals. Once that finding was recorded, there was no basis to disallow the exemption claim or to send the matter back merely to examine the date of despatches, particularly when that aspect was not in dispute before the assessing authority. The Tribunal's remand order was therefore unsustainable.

Conclusion: The assessee succeeded. The Tribunal's order was set aside, and the matter was remitted for fresh disposal with the direction to treat the purchases as having been made for ex-U.P. principals.

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