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The Commissioner Of Trade Tax,U.P. Lko v. S/S Swastik Solvent Product India Ltd. - SALES/TRADE TAX REVISION No. 734 of 1995  RD-AH 794 (15 September 2004)
TRADE TAX REVISION NO.734 OF 1995
The Commissioner, Trade Tax, U.P., Lucknow. .....Applicant
S/S Swastik Solvent Product India Ltd., Rampur. ....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 08.03.1995 relating to the assessment year 1983-84.
Applicant was the manufacturer of rice bran oil and deoiled cake. During the year under consideration, applicant had made the sales to the institutions, certified by All India Khadi And Village Industries Commission and U.P. Khadi And Village Industries Board under Cottage Soap Industries for Rs.16,63,432.07p. These institution were S/s Akhadya Tel Avam Sabun Audyogik Sahkari Samiti Limited, 74, Prempuri, Muzaffarnagar, S/S Nanak Gramodyog Sansthan, 201/A-4, Prahlad Nagar, Meerut and S/S Gramodyog Karyakarta Sangh, 40, Pasrath, Jhansi. It also appears that aforesaid three institution have issued Form-3-B in respect of purchases to the applicant. Assessing authority disallowed the claim of the exemption on the sales of rice bran oil to the aforesaid three institutions on the ground that the exemption on the purchase was available to the Institution and not to the selling dealers. First appellate authority allowed the appeal and deleted the tax. Commissioner of Trade Tax filed appeal before the Tribunal, which was also rejected.
Heard learned counsel for the parties.
There is no dispute that the sale of rice bran oil amounting to Rs.16,63,432.07p., which is in dispute, was to the three institutions certified by All India Khadi And Village Industries Commission and U.P. Khadi And Village Industries Board under Cottage Soap Industries. It is also not in dispute that in respect of the aforesaid amount, the aforesaid three institution issued Form-3-B to the applicant, which were filed during the course of assessment proceeding. Vide Notification No.ST-II-5395/X-902(60)/59-U.P.Act No.XV-48-Order-82, dated 30.09.1992 the institutions certified by All India Khadi And Village Industries Commission and U.P. Khadi And Village Industries Board under Cottage Soap Industries were entitled for exemption both on the sale of their manufactured product as well as on the purchases of any goods connected with the manufacture of the product. Therefore, if it is proved that the sale was made to the institutions holding required certificates, the sales to such institutions were not liable to tax. In the present case, aforesaid three institutions have issued Form-3-B to the applicant and the applicant had filed Form-3-B in respect of the aforesaid amount before the assessing authority. There is no reason to disallow the claim of exemption on the sales, which were covered by Form-3-B. I do not find any error in the order of Tribunal. Tribunal has rightly affirmed the order of first appellate authority allowing the claim of exemption on the amount of Rs.16,63,432.07p.
In the result, revision fails and is accordingly, dismissed.
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