High Court of Judicature at Allahabad
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Commissioner Of Trade Tax U.P.Lucknow v. M/S Sanjay Paper & Chemical Industries, Ltd, Basti. - SALES/TRADE TAX REVISION No. 233 of 1996  RD-AH 4047 (5 October 2005)
TRADE TAX REVISION NO.233 of 1996.
The Commissioner, Trade Tax, U.P., Lucknow. Applicant
M/S Sanjay Paper & Chemical Industries, Ltd, Basti. 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 9th September, 1995 relating to the assessment year 1987-88.
Assessing authority levied the tax on the purchase of raddi papers under section 3-AAAA of the Act treating it as waste product and covered under the entry "old, discarded, unserviceable or obsolete machinery, stores or vehicles including waste products" being purchased from unregistered dealer. First appeal filed by the dealer has been rejected. Dealer filed second appeal before the Tribunal, which has been allowed. Dealer filed the bills from whom the purchases of raddi were made and claimed that the purchases were made from the registered dealer on which tax has been charged. With regard to the vehicle, it was claimed that it was in useable form and, therefore, not liable to tax. Tribunal accepted the plea of the dealer and deleted the tax levied on the purchases of raddi papers under section 3-AAAA of the Act and on the sale of car.
Heard learned Standing Counsel. No one appears on behalf of the dealer/opposite party.
Learned Standing Counsel submitted that raddi paper is covered under ''waste product' of entry "Old, discarded, unserviceable or obsolete machinery, stores or vehicles including waste products except cinder, coal ash and such items as are included in any other notification issued under the Act" as such liable to tax at the point of sale to consumer. He submitted that the Tribunal has wrongly allowed the exemption on the basis of the purchase invoice produced for the first time before it and, therefore, the Tribunal has erred in deleting the tax under section 3-AAAA of the Act. I do not find any substance in the argument of the learned Standing Counsel. Purchase invoices filed before the Tribunal, have been accepted under section 12-B of the Act and the opportunity of verification was given to the State Representative and after verification, it has been accepted that the purchases were made from registered dealers. The Division Bench of this Court in the case of J & J Enterprises Versus Commissioner of Trade Tax reported in 1996 UPTC 471 held that the word "waste product and waste material" have different connotation and product obtained as a result of manufacturing process, is only waste product. The Division Bench held as follows.
"From the meaning of the words ''waste product' as given in the above dictionaries, it appears, that waste product is a product what has gone waste in the manufacturing process or in other words what becomes waste for the manufacturer during the manufacturing process".
In this view of the matter also the Raddi papers cannot be said to be waste product because it is not obtained as a result of manufacturing process. There is no material to dispute the finding recorded by the Tribunal that the car sold by the dealer was in useable form. In the circumstances, there is no merit in the present revision.
In the result, revision fails and is, accordingly, dismissed.
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