Burden of proof in trade tax exemption claims requires evidence of intra-State purchases before relief can be allowed.

Section 12A placed the burden on the assessee to prove facts specially within its knowledge and to substantiate any claim for exemption or relief. Where exemption was claimed on disclosed sales turnover, the assessee had to show that the goods sold were purchased within Uttar Pradesh. As no purchase vouchers or other supporting material were produced before the authorities, and no evidence established intra-State purchases, the exemption claim could not be accepted. The Tribunal's approach of allowing exemption merely because there was no material on import was inconsistent with the statutory burden. The relief granted was therefore unsustainable and the assessee was not entitled to exemption on the disclosed turnover.

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Issues: Whether, in an assessment under the U.P. Trade Tax Act, the assessee claiming exemption on disclosed sales turnover was required to prove that the goods were purchased within the State and whether failure to produce purchase vouchers or other supporting material justified denial of the exemption.

Analysis: Section 12A placed the burden on the assessee to prove facts specially within its knowledge and to establish the facts and circumstances supporting any claim for exemption or relief. The assessee had disclosed the turnover but failed to produce purchase vouchers or other material before any authority to show that the goods sold were purchased within Uttar Pradesh. In the absence of such proof, and with no supporting material demonstrating intra-State purchases, the claim that the entire turnover related to exempt U.P. purchased goods could not be accepted. The Tribunal's view that exemption could be granted merely because there was no material of import on record was contrary to the statutory burden.

Conclusion: The exemption claim failed and the relief granted by the Tribunal was unsustainable; the assessee was held not entitled to exemption on the disclosed turnover.

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