High Court of Judicature at Allahabad
Case Law Search
Commissioner Trade Tax, U.P. Lucknow v. S/S Sita Ram Dass And Oil Mill Jalaun - SALES/TRADE TAX REVISION DEFECTIVE No. 242 of 1999  RD-AH 6967 (6 December 2005)
TRADE TAX REVISION NO.(242) OF 1999
The Commissioner, Trade Tax, U.P. Lucknow. ....Applicant
S/S Sita Ram Dall and Oil Mill, Jalaun. ....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 04.12.1998 for the assessment year 1987-88.
During the year under consideration, dealer opposite party (hereinafter referred to as "Dealer") purchased food grain and oil seed from M/s Hanuman Stores, Jalaun. M/s Hanuman Stores, Jalaun had issued Form 3-C (2) to the present dealer. During the course of the assessment proceeding dealer claimed exemption on the purchases made from H/s Hanuman Stores, Jalaun on the basis of Form 3-C (2). Assessing authority issued the show cause notice that the benefit of Form 3-C (2) could not be allowed because the said forms had been declared invalid by the Headquarter vide circular no.1873 dated 13.01.1992. In reply to the show cause notice, it was stated the purchases were made against 9 R and bills and on the said purchases M/s Hanuman Stores, Jalaun had paid the tax, which could be verified from Trade Tax Officer, Sector-2, Orai. Assessing authority without disputing the explanation of the dealer refused to allow the benefit against the said declaration Form 3-C (2) on the ground that they had been cancelled and the dealer should have obtained fresh forms from the seller. First appeal filed by the dealer was rejected. Tribunal, however, allowed the appeal and allowed the benefit of exemption against said Form 3-C (2).
Heard learned Standing Counsel.
I do not find any error in the order of Tribunal. Assessment year involved is 1987-88. When the dealer had made the purchases and received Form 3-C (2) from M/s Hanuman Stores, Jalaun, it was valid form. Thus, on the basis of the circular of the Headquarter dated 13.01.1992 cancelling the said Form 3-C (2), benefit of the exemption can not be denied to the dealer, who had received the forms bonafidely. The dealer can not be put to suffer for no fault on its part. Cancellation of any form can be only with prospective effect and not with retrospective effect. Thus, the Tribunal has rightly allowed the exemption against Form 3-C (2) in which no error or discrepancy was found.
In the result, revision fails and is accordingly, dismissed.
Double Click on any word for its dictionary meaning or to get reference material on it.