Burden of proof under section 6A requires credible evidence of captive use to avoid taxable sale treatment.

An assessee claiming that iron and steel received from outside the State were consumed in erecting plant and machinery must prove that asserted captive use with credible evidence under section 6A of the Central Sales Tax Act. Balance sheets, invoices, bills and certificates were found insufficient to establish actual utilisation at the Hassan unit, so the authorities were justified in treating the goods as taxable turnover and restoring the assessment.

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Issues: Whether the assessee discharged the burden under section 6A of the Central Sales Tax Act to prove that the iron and steel received by stock transfer or purchase was actually used in the erection of plant and machinery at the Hassan unit, and whether the revisional order restoring the assessment was justified.

Analysis: The assessee failed to produce clinching evidence to establish actual utilisation of the iron and steel in the manufacture or erection of plant and machinery. The records placed before the appellate authority, including balance sheets, extracts, bills, invoices and certificates, were found insufficient to prove the claimed captive use. In a case where taxable goods are shown to have been purchased or received from outside the State, the burden lies on the assessee to prove that no taxable sale has occurred and that the goods were not sold within the State. On the facts, the assessing authority and the revisional authority were justified in drawing the inference that the value of the goods had to be treated as taxable turnover.

Conclusion: The assessee did not discharge the burden cast on it under section 6A, and the revisional authority was correct in restoring the assessment and rejecting the appellate order.

Ratio Decidendi: Where an assessee claims that goods received from outside the State were not sold but were consumed in setting up its unit, the assessee must prove the claimed use with credible evidence, failing which the presumption of taxable sale within the State may be drawn.

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