DEV ENTERPRISES Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) This revision has been filed by the assessee against an order passed by the Trade Tax Tribunal dated January 27, 2004, for the assessment year 1999-2000 by which the Tribunal has imposed the penalty on the assessee for violation of the provisions of section 4B(5) of the U.P. Trade Tax Act, 1948 (hereinafter referred to as "the Act"). The facts of the case are that the assessee was granted a recognition certificate under section 4B of the Act for manufacturing cycle and moped parts under the said recognition certificate. The assessee was entitled to purchase the raw materials and also furnace oil and LDOs. The assessee purchased the furnace oil and use the same for manufacture of cycle and moped parts.

(2.) A notice was issued against the assessee on October 22, 2001 asking the assessee to show cause why penalty under section 4B(5) of the Act should not be imposed on it for the reasons that it had used the material purchased against the recognition certificate for the work done by the assessee on job-work basis.

(3.) An order of penalty was passed on November 29, 2001 against which the assessee filed an appeal under section 9 of the Act. The appeal of the assessee has been allowed by the Deputy Commissioner (Appeals) by recording a finding that the material which was purchased against form IIIB was used for the manufacture of cycle parts. The order of penalty was therefore, set aside. Being aggrieved by the order passed in the first appeal the Department went in second appeal and the Tribunal has allowed the second appeal of the Department and has upheld the order of penalty.