The Revising Authority, Varanasi, has referred the following questions of law for the opinion of this Court :

" (1) Whether, on the facts and in the circumstances of the case, the dealer was liable to tax under section 3-D (2) of the U. P. Sales Tax Act in respect of the sales of foodgrains made by him on behalf of his ex-U. P. principals ?

(2) Whether, on the facts and in the circumstances of the case, section 21 of the U. P. Sales Tax Act has rightly been applied ?"

The first question is concluded by the decision given in Commissioner of Sales Tax v. Hanuman Trading Company ([1979] 43 S. T. C. 408) (S. T. R. No. 852 of 1975) and is answered by saying that the dealer was liable to tax under section 3-D (2) of the Act.

Coming now to the second question, the Sales Tax officer in proceedings under rule 41 (5) had considered the sales of foodgrains made by the assessee on behalf of the ex-U. P. principals, and had held them to be nontaxable. Subsequently, taking the view that they were taxable, he issued notices under section 21. The basis on which he took this view does not appear to be based on any material other than his own subjective view. It is thus a case where no