Burden of proving second sales rests on the assessee; remand for re-verification sustained where records were inadequately examined.

When an assessee claims exemption on the footing that disputed turnover constitutes second sales, the burden of proving that claim rests on the assessee under section 6A of the Karnataka Sales Tax Act, 1957. Where the books of account and purchase bills were not sufficient to substantiate the objection, a remand for re-verification of the records and fresh consideration was treated as appropriate. The High Court found no reason to interfere with that approach and sustained the Tribunal's setting aside of the assessment and appellate orders.

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Issues: Whether the Tribunal was justified in setting aside the assessment and appellate orders and remanding the matter for re-verification of the books of account, while placing the burden on the assessee to establish that the disputed purchases were second sales.

Analysis: The Tribunal recorded that the assessee had failed to substantiate, with books of account and purchase bills, the objection that the disputed transactions represented second sales. It held that where the assessee claims exemption from tax on the footing of second sale, the burden lies on the assessee under section 6A of the Karnataka Sales Tax Act, 1957. On that basis, and on the ground that the lower authorities had not properly appreciated the objection statement and supporting material, the Tribunal set aside the orders and directed re-verification of the accounts and fresh orders after production of the relevant records. The High Court found no ground to interfere with that approach.

Conclusion: The Tribunal's remand and its view on the assessee's burden under section 6A were upheld, and the revision petition was dismissed.

Ratio Decidendi: When an assessee claims that disputed turnover relates to second sales, the burden of proving that claim lies on the assessee, and a remand for re-verification is permissible where the supporting records have not been properly examined.

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