Prima facie dealer status can justify appointment of an assessing authority, with final determination reserved for assessment proceedings.

Prima facie material was sufficient to justify appointment of an assessing authority under Rule 6(5) and Rule 6(7) of the U.P. Trade Tax Rules where a transporter appeared to be carrying on business as a dealer. The Court relied on the survey findings, goods found without supporting documents, inability to identify consignors and consignees, and security deposits for some consignments to infer possible buying and selling on the petitioner's own account. The power to appoint an assessing authority could be exercised on prima facie satisfaction, while the final question whether the petitioner was only a transporter or also a dealer was left for assessment proceedings. The impugned appointment order was upheld.

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Issues: Whether the Additional Commissioner could appoint the Assistant Commissioner as assessing authority under Rule 6(5) and Rule 6(7) of the U. P. Trade Tax Rules on the basis of prima facie material indicating that the petitioner transporter was also engaged in business as a dealer.

Analysis: The material considered by the authority included the survey at the petitioner's premises, the presence of goods without supporting documents, the petitioner's inability to disclose the consignor and consignee particulars, and the deposit of security in respect of some consignments. On this basis, the Court held that there was sufficient prima facie material to infer that, apart from transportation activity, the petitioner was also involved in buying and selling on its own account. The Court further held that the power under Rule 6(5) and Rule 6(7) could be exercised on prima facie satisfaction that the person was a dealer, while the ultimate question whether the petitioner was merely a transporter or was also carrying on business as a dealer was to be determined in the assessment proceedings.

Conclusion: The impugned order appointing the assessing authority was upheld and no interference was called for.

Ratio Decidendi: For the purpose of appointing an assessing authority under the trade tax rules, prima facie material is sufficient to form the requisite satisfaction that a person may be a dealer, and the final determination of dealer status is left to assessment proceedings.

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