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The Commissioner, Trade Tax U.P. v. M/S Pine & Allied Products Pvt.Ltd. Bareilly.Td,Rampur - SALES/TRADE TAX REVISION No. 1632 of 1994  RD-AH 982 (30 September 2004)
Court no. 55
Sales Tax Revision no. 1632 of 1994.
Commissioner of Trade Tax, U. P. Lucknow... ... Revisionist.
M/S Pine & Allied Products, Bareilly. ... Respondent.
Hon'ble Rajes Kumar, J.
The present revision under Section 11 of U. P. Trade Tax Act (hereinafter referred to as ''Act') is directed against the order of Tribunal dated 22.7.1994 relating to assessment years 1979-80.
Dealer opp.party was engaged in the business of manufacturing of rosin turpentine oil and holding Recognition Certificate under Section 4-B of the Act. Rosin was manufactured out of resin (Lisa) and dealer claimed that resin manufactured by it was the constituent of Paints and Varnishes. Tribunal accordingly held that the dealer was entitled for full exemption on the purchases of resin (Lisa) in view of Notification no. ST-X-II-7551 dated 31.12.1976, inasmuch as, resin turpentine Oil was covered under the Entry 7 of Annexure-III of the said Notification. Tribunal accepted the plea of dealer relying upon the decision of this Court in the case of CST Vs. M/S Jai Ambey Lisa Udyog, Almora reported in 1992 U. P. T. C. page 212.
Heard Counsel for the parties.
The relevant part of the Notification no. ST-X-II-7551 dated 31.12.1976 reads as follows:-
In exercise of the powers under Section 4-B of the U.P. Sales Tax Act, 1948 (U.P. Act no. XV of 1948) read with section 21 of the U. P. General Clauses Act, 1904 (U. P. Act no. 1 of 1904) and in supersession of Government Notification no. ST-II2958/X-/9(1)/76 dated May 20, 1976, the Governor is pleased to order that with effect from January 1, 1977 and subject to the conditions and restrictions specified in the said section 4-B:-
2. No tax shall be payable on the sale to or, as the case may be purchase by any units in respect of ''raw materials' required by it for use in the manufacture of the goods mentioned in Annexure III or for the packing of the said goods manufactured by it.
List of notified goods referred to in clause (2):-
7. Paints, varnishes, enamels, thinners and allied surface casting products and constituents thereof.
It appears that the Tribunal treated rosin as constituent of Paints and Varnishes and accordingly held that it covered under the entry of Annexure-III of the aforesaid Notification. Learned Standing Counsel is not able to show that the rosin is not constituent of Paints and Varnishes.
In the result, revision fails and is dismissed.
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