Burden of proving sale of imported cotton as such justified remand for fresh tribunal reconsideration.

Where regular books of account covered purchases, sales and manufacturing, and the record did not show that imported cotton was sold as such, the Revenue had to discharge the burden of proving that factual allegation before turnover could be assessed on that basis. Applying an earlier similar precedent, the proper course was fresh consideration rather than final determination on the existing record. The matter was therefore sent back for reconsideration by the Tribunal and the assessment-related revisions were disposed of through fresh adjudication.

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Issues: Whether the matter should be remanded to the Tribunal for fresh decision on the alleged sale of imported cotton as such, and the consequential assessment of turnover.

Analysis: The applicants had maintained regular books of account relating to purchases, sales, and manufacturing, and the material on record did not show that the imported cotton had been sold as such. The dispute turned on whether the Revenue had discharged the burden of proving such sale instead of use in the manufacture of exempt handloom cloth. In view of an earlier decision on similar facts, the proper course was to send the matter back for reconsideration by the Tribunal.

Conclusion: The matter was remanded to the Tribunal to decide the appeals afresh.

Final Conclusion: The assessment-related revisions were disposed of by directing fresh adjudication by the Tribunal.

Ratio Decidendi: Where the record does not contain material to support an that goods were sold as such, and the issue is covered by a similar remand precedent, the matter may be sent back for fresh consideration.

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