TaxTMI 
TaxTMI 
2008 (3) TMI 630
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....e dispute relates to levy of tax on the purchase of raab galawat and raab salawat made by the dealer for and on behalf of its ex-U.P. principals. The dealer filed its returns in which it showed the total transaction of Rs. 1,56,935.89 to be purchases made from local dealers for and on behalf of its ex-U.P. principals. In support of the same the dealer produced documents at the time of assessment according to which on the date on which it had received orders from the ex-U.P. principals, it made the local purchases and thereafter despatched the goods so purchased on the same day. The details with regard to local purchases and despatches have been submitted. The assessing authority did not accept the aforementioned transactions to be purchases....
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....ng the Commissioner of Trade Tax. Along with the revision the dealer has filed photocopy of the documents showing the local purchases and the despatch of the same to the ex-U.P. principals situate outside the State of U.P. The submission on behalf of the dealer is that the authorities have disbelieved the contention of the dealer only on the ground that there was no evidence on record to show that the dealer had prior purchase orders or, in other words, existing purchase orders on the basis of which the local purchases were made and the despatches were effected. According to the learned counsel for the dealer, right from the stage of assessment, as is apparent from the assessment order also, the claim of the dealer was that these purchas....
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....g given my careful consideration to the submissions of learned counsel for the parties, two questions arise in this case. Firstly, as to whether oral orders given on telephone or through representative would be taken to be prior purchase orders and secondly, if the documents produced by the dealer before the assessing authority showed by conduct that the local purchases made of specific quantities of goods and such specific quantities of goods despatched on the same day were for the ex-U.P. principals, was it open to the assessing authority or the appellate authority and the Tribunal not to consider those documents and their effect. In other words the question is whether the dealer had or had not established that he local purchases made wer....
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....ate had been finally executed by the dealer on the same day, as the local purchases were made and despatched then and there on the same day. Had it been the case of dozen or hundred of orders on one day, in that event it could become necessary to be recorded and to have maintained a record for such number of oral purchase orders and executing them with smoothness and perfection. However, as number of the purchase orders is not so high; rather it is a maximum of two in a day and that too at a gap of number of days, in the opinion of the court it was not necessary to reduce them in writing. The reasoning thus given by the authorities and the submission made by the learned Standing Counsel cannot be accepted. From the facts and circumstances o....