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The Commissiner, Trade Tax U.P. Lko. v. S/S Satya Rice & General Mills - SALES/TRADE TAX REVISION DEFECTIVE No. 355 of 1997  RD-AH 426 (15 February 2005)
TRADE TAX REVISION NO.(355) OF 1997
The Commissioner, Trade Tax, U.P., Lucknow. ....Applicant
S/S Satya Rice & General Mills, Saharanpur. ....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 09.06.1997 for the assessment year 1988-89.
Dealer/opposite party (hereinafter referred to as "Dealer") was involve din the manufacturing of rice and was holding recognition certificate under section 4-B of the Act. Dealer was also involved in the trading business. During the year under consideration, dealer had purchased paddy for Rs.99,582.16p. in its own account and sold the same at Rs.1,00,815.05p. to S/S Om Prakash Harish Chandra, Saharanpur, a manufacturer of rice against Form 3-B No.323685. Assessing authority initiated the proceeding under section 4-B (5) of the Act on the ground that the dealer instead of using such paddy in the manufacturing of rice, sold the same against Form 3-B and accordingly, levied the penalty at Rs.9,100/-. First appeal filed by the dealer was rejected. Tribunal allowed the appeal and deleted the penalty under section 4-B (5) of the Act.
Heard learned counsel for the parties.
I do not find any error in the order of the Tribunal.
Section 4-B (5) of the Act reads as follows:
Section 4-B. Special relief to certain manufacturers.
(5) Where a dealer in whose favour a recognition certificate has been granted under sub-section (2) has purchased the goods after payment of tax at concessional rate under this section or, as the case may be, without payment of tax and,
(a) has used such goods for a purpose other than that for which the recognition certificate was granted or has otherwise disposed of the said goods; or
(b) the goods manufactured out of such raw material or processing material or the manufactured goods after being packed with such packing material are sold or disposed of otherwise than by way of sale in the State or in the course of inter-State trade or commerce or in the course of export out of the territory of India such dealer shall be liable to pay as penalty such amount as the assessing authority may fix which shall not be less than the different between the amount of tax on the sale or purchase of such goods payable under this section and the amount of tax payable under any other provisions of this Act but not exceeding three time the amount of such difference."
In the present case, dealer had purchased paddy in its own account without issuing any Form 3-B and without availing any benefit of concessional rate of tax in respect thereof in the course of trading activity. Therefore, if such paddy was sold against Form 3-B instead of using it in the manufacturing, it can not be said to be in violation of section 4-B (5) of the Act. Dealer was authorised to purchase and sale the paddy on his own account.
In the result, revision has no merit and is accordingly, dismissed.
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