High Court of Judicature at Allahabad
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The Commissioner,Trade Tax U.P.Lucknow v. Ram Pratap Sharma - SALES/TRADE TAX REVISION No. 287 of 1997  RD-AH 359 (4 February 2005)
TRADE TAX REVISION NO.287 OF 1997
The Commissioner, Trade Tax, U.P., Lucknow. ....Applicant
S/S Ram Pratap Sharma, Banda. ....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 13.12.1996 for the assessment year 1985-86.
Dealer/opposite party (hereinafter referred to as "Dealer") was running a rice mill and was involved in the manufacturing of rice from paddy. Admittedly, dealer was granted recognition certificate under section 4-B of the Act on 01.04.1986 Therefore, the dealer was admittedly not holding the any recognition certificate during the year under consideration. Assessing authority levied the tax on the purchase of paddy under section 3-D (1) of the Act. First appeal filed by the dealer was allowed on the ground that the paddy and rice both were declared goods under section 14 of the Central Sales Tax Act and rice after manufacturing were sold to registered dealer as well as to RFC. Commissioner of Trade Tax filed appeal before the Tribunal. Tribunal by the impugned order upheld the order of first appellate authority.
Heard learned Standing Counsel.
List revised. No one appears on behalf of dealer.
Learned Standing Counsel submitted that the paddy and rice are two different commodity. Both commodity may be declared commodity under section 14 of Central Sales Tax Act but the paddy being a different commodity liable to tax at the point of purchase under section 3-D of the Act because dealer was not holding recognition certificate under section 4-B of the Act. I find force in the argument of learned Standing Counsel. In the case of Raja Provision Stores Vs. Appellate Tribunal (Sales Tax), Trivandrum, reported in 105 STC, 325. Apex Court held that paddy and rice are two different commodity. Both may be declared commodity under section 14 of Central Sales Tax Act but it does not make any difference. Since the dealer was not holding recognition certificate under section 4-B of the Act during the year under consideration purchases of paddy were liable to tax under section 3-D of the Act. First appellate authority as well as Tribunal has erred in deleting the tax levied on paddy.
In the result, revision is allowed. Order of first appellate authority and the order of Tribunal are set aside and the order of assessing authority is restored
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