COMMISSIONER, COMMERCIAL TAX Vs. KASHI VISHWANATH STEEL LTD.

JUDGEMENT

(1.) After the creation of the State of Uttarakhand, purchases were made by the respondent-assessee, which purchases were used for manufacturing or packaging of the goods manufactured by the respondent-assessee. The goods so manufactured by the respondent-assessee were notified by the State Government of Uttar Pradesh in exercise of power under section 4BB of the U.P. Trade Tax Act, 1948. Under section 4BB of the Act, a similar manufacturer is entitled to credit for the tax paid on such purchases. Relevant portion of section 4BB of the Act is as follows:

(2.) The learned counsel appearing on behalf of the respondent has drawn our attention to section 86 of the Uttar Pradesh Reorganisation Act, which is as follows:

(3.) Part II of the Reorganization Act contains four sections, namely, sections 3, 4, 5 and 6. Section 3 forms the new State of Uttarakhand by caning out a part of the territory of the State of Uttar Pradesh. Learned counsel for the respondent submitted that, in that background, one has to read the provisions of section 86 of the Reorganisation Act insofar as the same applies to the U.P. Trade Tax Act. Reading that it appears to us, that section 86 conveyed that creation of the State of Uttarakhand by carving out a part of the State of Uttar Pradesh shall not be deemed to have affected any change in the territories, to which U.P. Trade Tax Act, 1948 extends or applies and territorial references in the U.P. Trade Tax Act, 1948 to the State of Uttar Pradesh shall, until otherwise provided by a competent Legislature or other competent authority, be construed as meaning the territories within the existing State of Uttar Pradesh before the appointed day, i.e., before creation of the State of Uttarakhand.