CST and VAT payment verification remitted for factual inquiry into DCB reports and alleged non-existence of demand

The Tribunal remitted the CST and VAT addition for fresh factual verification because the effect of the DCB reports and the assessee's claim that no demand existed for the relevant period could not be resolved without departmental confirmation. It directed the Assessing Officer to examine the material, verify whether any outstanding demand existed, and check whether the CST and VAT payments were properly made, taking the DCB reports into account.

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Issues: Whether the addition relating to CST and VAT payments required reconsideration in the light of DCB reports and the assessee's plea that no demand existed for the relevant period.

Analysis: The assessee produced DCB reports and claimed that the relevant challans were not available as the accountant had absconded. The Tribunal found that the effect of the DCB reports and the alleged non-existence of outstanding demand could not be accepted or rejected without factual verification from the concerned departments. It therefore considered it appropriate to direct the Assessing Officer to examine the material and verify whether any demand existed for the relevant period and whether the payments towards CST and VAT stood properly made.

Conclusion: The issue was remitted to the Assessing Officer for fresh factual verification and reconsideration, with directions to take the DCB reports into account.

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