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M/S Modi Pon Fibres Co., Ghaziabad v. Commissioner Of Trade Tax, U.P. Lko. - SALES/TRADE TAX REVISION No. 818 of 1996  RD-AH 3372 (22 September 2005)
Court no. 55
Trade Tax Revision no. 818 Of 1996.
M/S Modi Pon Fibres Company, Ghaziabad. ... Applicant.
Commissioner of Trade Tax, U. P. Lucknow. ...Opp. party.
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 27.08.1996 relating to the assessment year 1991-92 under the Central Sales Tax Act.
The following question has been raised in the present revision:-
(1) Whether, on the facts and circumstances of the case, the Trade Tax Tribunal was justified in law in confirming the imposition of additional sales tax on the Central sales made by the applicant without form ''C' for the period 16th January, 1992 to 31st March, 1992?
(2) Whether, on the facts and circumstances of the case, the Trade Tax Tribunal was justified in law in confirming the imposition of interest under Section 8 (1) of the U. P. Trade Tax Act in respect of the aforesaid levy of additional sales tax?
Heard learned Counsel for the parties.
Issue involved in the present revision is squarely covered by the decision of this Court in the case of U.P. Ceremics and Potteries Limited, Ghaziabad Vs. CST, reported in 1992 UPTC, 1333. In the said case, this Court held that the Government has issued a Circular dated 25.7.1981, in which, it was held that the additional tax was not leviable under the Central Sales Tax Act and the said Circular is binding upon the Revenue Authority. This Court accordingly held that the additional tax was not leviable. In the case of CST Vs. Indra Industries reported in UPTC, 2000, 472, the Apex Court held that the circulars are binding upon the Revenue Authorities and the authorities cannot take a different stand. In this view of the matter, order of the Tribunal is set aside and the aforesaid two questions are answered in favour of the applicant. Tribunal is directed to pass appropriate order under Section 11 (8) of the Act.
In the result, revision is allowed. Order of the Tribunal is set aside and the Tribunal is directed to pass appropriate order under Section 11 (8) of the Act.
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