STATE OF UTTAR PRADESH AND ANR. versus M/S. UNIVERSAL EXPORTERS AND ANR.

Citation: [1997] SUPP. 4 S.C.R. 49 · Decided: 10-09-1997 · Supreme Court of India · Bench: S.P. BHARUCHA, M. JAGANNADHA RAO · Disposal: Dismissed
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Judgment (excerpt)

ST A TE OF UTT AR PRADESH AND ANR. 
A 
v. 
M/S. UNIVERSAL EXPORTERS AND ANR. 
SEPTEMBER l 0, 1997 
[S.P. BHARUCHA AND M. JAGANNADHA RAO, JJ.] 
B 
Sales Tax·: 
U.P. Sales Tax Act, 1948/U.P. Sales Tax Rules, 1948: 
c 
S.3AAA!Ru/e 12A(5)~Presumption regarding certain sales-Assessee 
applied for issue of Form III in order to enable him to rebut the presumption-
Sa/es Tax Officer rejected the application holding that transactions entered 
into by assessee were export of leather-Held, whether or not the presumption 
under s.3AAA can be rebutted is to be considered only after the blank form D 
has been issued and it is duly filled in and.submitted along with such other 
proof as the dealer adduces-Order of Sales Tax Officer rejecting assessee 's 
application for blank forms was Improper and must be quashed-After the 
blank forms are issued to the assessee and duly filled up and submitted along 
with such proof as the ass;;:ssee may adduce, it shall, be open to the assessing 
aulhot:ity to satisfY itself as to whether or not the 'presumption under Section E 
3-AAA stands rebutted 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2535of1991. 
From the Judgment and Order dated 19.8.83 of the Allahabad High Court F 
in C.M.W.P. No. 48of1983. 
R.C. Verma, C.D. Singh and R.B. Misra for the Appellants. 
. 
,.. 
R.F. Nariman for the Respondents. 
The following Order of the Court was delivered : 
Section 3AA and Section 3AAA of the Uttar. Pradesh Sales Tax Ai:t, 
. 1948, at the relevant time read thus : 
G 
"3~AA. Rate and point of tax in respect of certain goods - subject to H 
49 
50 
A 
B 
c 
D 
E 
F 
SUPREME COURT'REPORTS [1997) SUPP. 4 S.C.R. 
the provisions of Section 3-D, the turnover in respect of goods declared 
under Section 14 of the Central Sales Tax Act, 1958 (Act 74 of 1956) 
to be of special importance in inter-State trade or commerce shall not 
be liable to tax except at the point of sale by a dealer to the consumer 
and the rate of tax shall be such, not exceeding the maximum rate for 
the time being specified in Section 15 of the said Act, as the State 
Government may, by notification in the Gazette, declares." 
"3-AAA: Presumption regarding certain sales. Where goods are liable 
to tax under this Act only at the point of sale to the consumer, every 
sale by a dealer. 
(a) to a registered dealer who does not purchase them for re-sale 
within the State or in the course of inter-State trade or commerce, 
in the same form and condition in which he has purchased them 
or, 
(b) to any person other than a registered dealer, 
shall be deemed to be a sale to the consumer, unless the dealer proves 
otherwise to the satisfaction of the assessing authority and, for the 
purpose, also furnishes to the assessing authority such declaration 
obtained from the purchasing dealer, in such form and manner and 
within such period, as may be prescribed." 
Rule 12A( 5) of the U .P. Sales Tax Rules read thus : 
"If the Sales Tax Officer is satisfied that the requisition of the dealer 
for blank forms is genuine and reasonable, he may issue the same in 
such manner as he deem fit. If the fee paid is more than the fee 
payable for the number of forms issued, the balance shall be credited 
to the account of the dealer to be adjusted against any future issue 
of the forms." 
G It appears that the assessee applied for a form to enable it to rebut the 
presumption under Section 3-AAA. The application in this behalf was not 
dealt with. The assessee thereupon filed a writ petition in the High Court at 
Allahabad. Pending the disposal of the writ petition, the Sales Tax Officer 
rejected the application as, in his opinion, the transactions entered into by 
the assessee were by way of export of leather. The writ petition was amended 
H and the refusal was challenged. 
ST A TE v: UNIVERSAL EXPORTERS 
51 
Two .learned Judges of the High Court having differed on the writ A 
petition, it was referred to a third learned Judge. The third learned Judge 
agreed that the writ petition should be allowed. Hence, this appeal by special 
leave at the instance of the State. 
The assessee not having appeared, we thought it necessary to appoint B 
amicus curiae, and we are obliged to Mr. R.F. Nariman for havmg assisted the 
Court as such. 
Section 3.-AAA provides for a presumption in respect of certain sales. 
It states that where goods are liable to tax under the Act only at the point C 
of sale to a consumer, every sale by a dealer to a registered dealer who doe
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