Inter-State purchase classification upheld where contemporaneous records supported out-of-State despatch and adverse enquiry was unfairly relied upon.

A revisional court will not disturb a Tribunal's factual finding that purchases were made for an ex-U.P. principal and that the goods were despatched outside the State when that finding is supported by contemporaneous records such as books of account, 6R and 9R entries, stock register and satti bahi. The court also held that reliance on an adverse enquiry was unwarranted where the enquiry was conducted after a long delay and was not fairly confronted to the dealer, with no opportunity for cross-examination. On that record, the transactions were treated as inter-State purchases and the deletion of tax was upheld.

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Issues: Whether the purchases were made for and on behalf of the ex-U.P. principal and constituted inter-State purchases so as to justify deletion of tax.

Analysis: The revisional court found no error in the Tribunal's conclusion that the transactions were supported by the books of account, 6R and 9R entries, and the stock register and satti bahi showing the name of the ex-U.P. principal. The adverse enquiry conducted after a long lapse of time was not put to the dealer and no opportunity of cross-examination was given, so reliance on that enquiry was unwarranted. The finding that the goods were purchased for the ex-U.P. principal and despatched outside the State was a pure finding of fact based on the record.

Conclusion: The question was answered in favour of the assessee and the deletion of tax was upheld.

Final Conclusion: The revisional challenge failed because the Tribunal's factual finding on the inter-State character of the purchases did not warrant interference.

Ratio Decidendi: A revisional court will not interfere with a factual finding that purchases were made for an out-of-State principal and goods were despatched accordingly when that finding is supported by contemporaneous records and the contrary material was not fairly confronted to the dealer.

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