Burden of proof in sales tax assessment and estimated turnover upheld where the assessee produced no reliable evidence.

Under section 12-A of the U.P. Sales Tax Act, facts specially within the assessee's knowledge had to be proved by the assessee in assessment proceedings. A colliery certificate showing non-lifting of part of the allotted coal was insufficient, because no material showed that the balance coal did not enter Uttar Pradesh or was sold elsewhere; the burden therefore remained undischarged and taxability was upheld. On turnover, the absence of books of account and sale-rate evidence justified the Tribunal's estimated figure, and no arbitrariness or legal error was shown in the estimate. The assessment as affirmed by the Tribunal was left undisturbed.

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Issues: (i) Whether the assessee had discharged the burden of proving that the disputed quantity of coal had not been imported into the State and was not taxable in Uttar Pradesh; (ii) Whether the turnover fixed by the Tribunal was arbitrary and illegal.

Issue (i): Whether the assessee had discharged the burden of proving that the disputed quantity of coal had not been imported into the State and was not taxable in Uttar Pradesh.

Analysis: Section 12-A of the U.P. Sales Tax Act places the burden on the assessee to prove facts specially within its knowledge in assessment proceedings. The assessee relied on a colliery certificate showing non-lifting of part of the allotted coal, but produced no material to show that the balance quantity had not entered Uttar Pradesh or had been sold elsewhere. In the absence of such evidence, the burden was not discharged.

Conclusion: The assessee failed to prove that the disputed coal was not imported into Uttar Pradesh, and the finding of tax liability was upheld.

Issue (ii): Whether the turnover fixed by the Tribunal was arbitrary and illegal.

Analysis: The assessee maintained no books of account and produced no evidence of the sale rate. In these circumstances, the Tribunal was entitled to sustain the estimated turnover on the material available and no error of law was shown in the estimate adopted.

Conclusion: The turnover estimate was not shown to be arbitrary or unlawful.

Final Conclusion: The revision was found to be without merit and the assessment as affirmed by the Tribunal was left undisturbed.

Ratio Decidendi: Where a fact relevant to assessment is specially within the knowledge of the assessee, the assessee must prove it, and in the absence of books of account or reliable evidence, a turnover estimate based on available material will not be interfered with unless shown to be arbitrary or perverse.

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