Local purchases and burden of proof: fake registration numbers alone did not prove importation or tax liability.

Purchase vouchers showing local purchases were accepted as sufficient unless the department produced independent evidence that the goods were imported. The mere fact that registration numbers on the vouchers were allegedly fake did not, by itself, establish importation or shift the burden to the dealer to prove a negative fact. As the department failed to discharge the burden under section 12-A with material proving import, the turnover was treated as not taxable and the assessee succeeded.

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Issues: Whether the turnover of Rs. 2,30,000 could be treated as taxable on the footing that the dealer was an importer, when the purchase vouchers showed local purchases but the selling dealers had allegedly used fake registration numbers.

Analysis: The dealer produced purchase bills to support the claim of local purchases. The mere fact that the registration numbers shown on the vouchers were found to be fake was held insufficient, by itself, to establish that the dealer had imported the goods. The burden under section 12-A was not discharged by the department through independent evidence proving importation, and a negative fact could not be required to be proved by the dealer in the absence of material showing import.

Conclusion: The turnover of Rs. 2,30,000 was held not taxable and the assessee succeeded.

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