Burden of proof in goods movement disputes shifts to Revenue once primary records show inter-State transport.

Where a dealer produced Form XXA, lorry receipts and other primary records to evidence movement of goods from Chennai to Bangalore, the initial burden under Rule 35A was treated as discharged. The Revenue then had to rebut that evidence by proper verification, including reference to relevant check-post records and scrutiny of the seal on the form. Because the assessment and appellate authorities did not effectively address the documents or verify the competing material, the Revenue failed to disprove the claim. The revision therefore succeeded, and relief was granted on proof of inter-State movement of goods.

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Issues: Whether the assessee proved movement of goods from Chennai to Bangalore by producing Form XXA with the check-post seal and lorry receipts, and whether the Revenue discharged the resulting burden under Rule 35A of the Tamil Nadu General Sales Tax Rules.

Analysis: The assessee produced Form XXA and other supporting records to show that the goods moved from Chennai to Bangalore. The assessment order proceeded without properly addressing the documents relied upon by the assessee, and the appellate authorities did not undertake an effective verification of the seal appearing on the form. Once the assessee produced primary evidence indicating movement of goods, the initial burden stood discharged and the onus shifted to the Revenue to disprove the assessee's claim by confronting it with the relevant check-post records. That exercise was not done, and the last fact-finding authority also failed to examine the veracity of the dealer's stand.

Conclusion: The issue is answered in favour of the assessee. The Court held that the assessee had discharged the initial burden and that the Revenue failed to rebut the evidence of movement of goods.

Final Conclusion: The revision succeeded and the assessee obtained relief on the core question relating to proof of inter-State movement of goods.

Ratio Decidendi: Where a dealer produces primary documents evidencing movement of goods, the initial burden is discharged and the Revenue must rebut that evidence by proper verification and contrary material; failure to do so entitles the dealer to relief.

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