TaxTMI 
TaxTMI 
2010 (8) TMI 841
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....eriod of limitation for the assessment year 1997-98 and the notice issued under section 21 of the Act by the assessing authority in pursuance of the order passed by the Additional Commissioner, Grade 1, Trade Tax, Moradabad Zone, Moradabad. It appears that the assessing authority had sought approval to re-open the proceeding on the ground that after passing of the assessment order dated July 18, 1998 on an inquiry made by the S.T.O. (SIB) from the seized books of account on March 31, 2000, it was found that the petitioner had purchased diesel from outside the State of U.P. for Rs. 36,27,027 which was provided to the transporter against the price for transportation of sugarcane which amounts to sale on which tax could not be levied in the a....
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.... was issued to the transporter for transporting the sugarcane. He submitted that the S.T.O. (SIB) in a survey made at the premises of the petitioner, seized various books of account and found that the petitioner had imported diesel from outside the State of U.P. and supplied the same to the transporter and received the value of the diesel from the transporters. Therefore, the supplies of diesel to the transporters were sales by the petitioner. He submitted that in view of the decisions of the apex court in the case of N. M. Goel & Co. v. Sales Tax Officer, Rajnandgaon reported in [1989] 72 STC 368; [1990] UPTC 865 and in the case of Karya Palak Engineer, C.P.W.D., Bikaner v. Rajasthan Taxation Board, Ajmer reported in [2004] 136 STC 641 (SC....
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....e view that the information given by the S.T.O. (SIB) which was based on the documents seized by them at the time of survey dated March 31, 2000 that the petitioner had purchased diesel from outside the State of U.P. and supplied the same to the transporters and received price for such diesel and not disclosed during the course of the original assessment proceeding, constitute the material to form the belief that there was a escaped assessment and on these facts the Additional Commissioner, Grade I, Trade Tax, Moradabad Zone, Moradabad, had rightly granted the approval under the proviso to section 21(2) of the Act and the assessing authority was wholly justified in issuing the notice under section 21 of the Act. It may be mentioned here tha....