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S. T. C. No. 26 of 1970, decided on 8th April 1970.
Question whether goods were sold to manufacturing licence‑holders and whether such sales were genuine ‑Findings on questions‑Findings on fact‑Sales Tax Act (ill of 1951), S. 17(2).
S. 4‑Manufacturing licences duly issued to buyers by Sales Tax Officer‑Burden lies on Department itself to prove ungenuineness of such licences and not on assessee‑Assessee, in circumstance, entitled to exemption Sales Tax Act (III of 1951), S. 17(2).
S. A. Nusrat for Applicant.
Date of hearing : 8th April 1970.
We agree with the Income‑tax Appellate Tribunal that the finding that the goods were sold to holders of manufacturing licences and that these sales were genuine, is a ,q pure finding of fact and no question of law arises from the decision of the Tribunal. Further, another aspect of the case which has disturbed us is this. It is admitted that the buyers to whom the goods were sold by the assessee held manufacturing licences, photostat copies of which were supplied to the sellers. These licences were issued by the Sales Tax Officer and the number of licences were available in the Sales Tax Department itself. If the Department had any suspicion about the genuine ness of the buyers' character as holders of manufacturing licences, then it was for the Department to make enquiries from the B Sales Tax Officer who issued those licences or to take action against that Sales Tax Officer if he wrongly issued those licences. We are further of the view that it is that Sales Tax Officer who should have been required to trace out the buyers. Therefore,) the burden in this case was throughout on the department as the department had issued the manufacturing licences.
For these reasons, we are of the view that this application is not only misconceived but is absolutely without any substance and is, therefore, dismissed in limine.
Application dismissed in limine.
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