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M/S Prem Agricultural Implements, Station Road, Moradabad v. Commissioner Of Trade Tax, U.P., Lucknow - SALES/TRADE TAX REVISION No. 608 of 2001  RD-AH 5119 (22 March 2007)
TRADE TAX REVISION NO.608 of 2001.
M/S Prem Agricultural Implements, Moradabad. Applicant
The Commissioner, Trade Tax, U.P. Lucknow. Opp.Party.
Hon'ble Rajes Kumar, J.
Present revision under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 7th February, 2001 relating to the assessment year, 1995-96.
The dispute relates to the rate of tax on diesel engine. The case of the applicant is that the diesel engine is used in a pumping set and, therefore, it is liable to tax at the rate of 4 percent applicable to the pumping set. Assessing authority, however, levied the tax at the rate of 6 percent treating it as machinery. The order of the assessing authority has been upheld in first appeal and by the Tribunal.
Heard learned counsel for the parties.
It is not in dispute that the applicant has sold diesel engine and not a pumping set. The relevant entry of the Notification No.TT-2-3402/XI-9(116)/94-U.P. Act-15-48-Order-94, dated 01.10.1994 reads as follows
"In exercise of the powers under clause (d) of sub-section (1) of section 3-A of the Uttar Pradesh Trade Tax Act, 1948 (U.P.Act No.15 of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P.Act No.1 of 1904), the Governor is pleased to make with effect from October 1, 1994, the following amendment in Government Notification No.ST-II-5784/X-10(1)/80-U.P. Act-15/48-Order-81, dated September 7, 1981, as amended from time to time.
(a) Machinery and spare parts of machinery not being
such machinery or spare parts thereof as are taxable under
any other item of the schedule or under any other notification.
(b) Water pumps and pumping sets.
M or I 6%"
Under the aforesaid notification, pumping set is liable to tax at the rate of 4 percent and not diesel engine alone. Admittedly, the applicant has sold diesel engine and not pumping set. Diesel engine has been held as machinery by the Apex Court in the case of CIT Versus Mir Mohd. Ali reported in 53 ITR, 165, which has been followed by this Court in the case of Commissioner of Trade Tax Versus M/S Snow While Industries reported in 1999 UPTC 130.
In this view of the matter, revision has no merit and is, accordingly, dismissed.
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