High Court of Judicature at Allahabad
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The Commissioner, Trade Tax, U.P. Lucknow v. S/S. Gulshan Sugar and Chemicals Pvt. Ltd. - SALES/TRADE TAX REVISION No. 530 of 1997  RD-AH 3229 (20 September 2005)
TRADE TAX REVISION NO.530 of 1997.
TRADE TAX REVISION NO.531 of 1997.
The Commissioner, Trade Tax, U.P., Lucknow. Applicant
S/S Gulshan Sugar and Chemicals, Pvt. Ltd, Muzaffarnagar. Opp.party
Hon'ble Rajes Kumar, J.
Present two revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal dated 4th January, 1997 relating to the assessment years, 1986-87 and 1987-88.
Heard counsel for the parties.
Learned Standing Counsel submitted that the Tribunal has erred in treating the rice husk as paddy husk and granting exemption on the turnover of rice husk merely on the ground that it is generally used as a fuel. He submitted that the paddy husk and rice husk have been treated as two different commodities by this Court in the case of Commissioner of Trade Tax Versus S/S U.P. Straw and Agro Product Ltd reported in 2004 UPTC 1125. He further submitted that the Tribunal has excluded the amount of freight charges from the purchased turnover on the ground that the turnover of rice husk is not liable to tax. He submitted that if the freight is charged along with the purchase price, then it is a part of the turnover. Learned counsel for the opposite party relied upon the order of the Tribunal.
I have perused the order of the Tribunal and the authorities below.
In the case of Commissioner of Trade Tax Versus S/S U.P. Straw and Agro Product Ltd (supra), this court held that rice husk and paddy husk are two different commodities and under the notification no. ST-II-3712/X-6 (1)/85 dated 5.6.1985, rice husk is liable to tax at the point of purchase. Therefore, the Tribunal has erred in granting the exemption on the purchases of rice husk treating it as paddy husk. Tribunal is directed to classify the turnover of rice husk and paddy husk and levy the tax only on the purchases of rice husk. Tribunal may also examine the question of inclusion of freight charges in the purchase turnover under the U.P. Trade Tax Act.
In the result, both the revisions are allowed. The order of the Tribunal dated 4th January, 1997 is set aside and the matter is remanded back to the Tribunal to decide the appeal a fresh in the light of the observations made above.
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