Remitted for fresh disposal; appellant may now produce previously offered documents; authority may draw adverse inferences

SC set aside the HC and Tribunal orders and remitted the matter to the Sales Tax Tribunal at Meerut for fresh disposal. A party having died, the appellant may now produce documents previously offered; the Tribunal may require production of bills and other papers and, if not produced, may draw adverse inferences admissible in law. The Tribunal may also consider the circumstance that receipts were credited in a lump sum and must render a fresh decision after considering all material and submissions.

---

---

Issues involved: Appeal against the order of the High Court and Sales Tax Tribunal based on the use of untested statement in determining inter-State sale.

Summary:
The Supreme Court allowed the appeal solely on the ground that the statement of Banke Lal, which was not cross-examined, was crucial in determining the transaction as an inter-State sale. Since Banke Lal had passed away, the Court set aside the orders of the High Court and Sales Tax Tribunal, remitting the matter back to the Sales Tax Tribunal at Meerut. The appellant was granted the opportunity to produce relevant documents, subject to verification by the Tribunal for genuineness and impact on the issue.

Respondents highlighted the absence of primary evidence, such as bills, necessary to ascertain the nature of the transaction. The Tribunal was directed to request the appellant to provide the missing bills and documents; failure to do so could lead to adverse inferences. The Tribunal was instructed to consider all relevant material and circumstances in rendering a fresh decision.

The interim order regarding the interest amount was to remain in effect until the Sales Tax Tribunal made a final decision. The appeal was disposed of with no order as to costs, allowing the case to be remanded to the Tribunal for further proceedings.

---