COMMISSIONER OF TRADE TAX Vs. PRECISE LABORATORIES LTD

JUDGEMENT

(1.) This revision is directed against the order dated May 24, 2000/June 12, 2000 passed by the Trade Tax Tribunal, Ghaziabad, allowing second appeal of the opposite-party granting remission with regard to the tax liability as claimed by the dealer.

(2.) Brief facts giving rise to present revision are that the dealer was granted eligibility certificate by the Divisional Level Committee for a period of five years from March 28, 1990 to March 27, 1995. However, on March 15, 1994, the dealer made application to Tahsildar-Dadari, District-Ghaziabad, stating that unit of the dealer is situated at Plot No. A-13/2, Industrial Area, Tahsil-Dadari. A prayer was made that a certificate in this regard may be issued. Tahsildar-Dadari issued relevant certificate. On the basis of the said certificate an application dated March 28, 1994 was moved by the opposite-party for amendment in the eligibility certificate for extending the period of exemption from five years to six years. The Divisional Level Committee, vide its order dated April 28, 1994 modified the eligibility certificate and granted exemption Under Section 4-A of the U.P. Trade Tax Act, 1948 for a period of six years from the date of first sale. However, subsequently, it was found that the unit of the opposite-party was not situated within the limit of Tahsil-Dadari and it was situated within the limit of Tahsil-Ghaziabad. Therefore, the eligibility certificate was again amended reducing the period of exemption to five years holding that exemption for six years was not in accordance with law. The order dated January 8, 1996 amending the eligibility was served upon the dealer on February 6, 1996. The assessing authority made assessment for the year 1995-96 and levied tax of Rs. 6,25,17,375 but granted remission in respect of Rs. 5,25,91,650, vide demand letter dated January 6, 1998 in view of G.O. No. T.T-2-1042/ll-94-9(6)/94 dated May 26, 1994 and demand of Rs. 99,25,725 was raised. The dealer filed appeal against the order dated January 6, 1998 which was dismissed as being not maintainable. Second appeal was also dismissed by the Tribunal. Thereafter, the dealer approached the High Court by filing a revision under the Trade Tax Act. The High Court vide its judgment dated September 9, 2000 held that the demand letter issued to the dealer was an order and it was appealable. The matter was remanded to the first appellate authority for decision afresh on merit. A submission was made before the first appellate authority that in view of Government Order No. T.T. 1642/II/94-9(6)/1994 dated May 16, 1994 and circular No. 254 dated May 26, 1994 and 18/261 dated May 16, 1994 issued by the Commissioner, the dealer was entitled to remission on the entire amount of tax till March 27, 1996 since no tax was realised by the dealer till that period and the dealer had not committed any fraud or misrepresented the facts in obtaining the eligibility certificate. This claim of the dealer was not accepted by the assessing authority as well as the first appellate authority. Therefore, the dealer filed second appeal before the Tribunal. The Tribunal vide its order dated May 24, 2000/June 12, 2000 allowed the appeal accepting the claim of the dealer.

(3.) Aggrieved by the order of the Tribunal, this revision has been filed by the department.