JUDGMENT :

Dhananjaya Y Chandrachud, J.

Civil Appeal No 793 of 2021 [Arising out of SLP(C) No 3885 of 2021]

1. Delay condoned.

2. Leave granted.

3. By a judgment and order dated 11 September 2019, a Single Judge of the High Court of Judicature at Allahabad dismissed a Sales/Trade Tax Revision¹[Sales/Trade Tax Revision Defective No 95/2019] instituted by the Commissioner of Commercial Taxes.

4. The respondent is a dealer registered under the provisions of the Uttar Pradesh Value Added Tax Act 2008 (“UP VAT Act 2008”). The respondent carries on the business of purchasing textiles and selling dress material for women. A survey was conducted at the establishment of the respondent on 9 March 2010 by the Special Investigation Branch. During the course of the survey, the statement of a partner of the respondent was recorded in which the nature of the business was described in the following terms:

“The business of manufacture and unstitched suit, salwar, kameeze, dupatta etc. is carried out. The work of design/embroidery is carried out on kameeze, Kurta and Dupatta. The sewing process is ca