COMMISSIONER OF TRADE TAX Vs. CHAKRAWATI CONSTRUCTION CO.

JUDGEMENT

(1.) This is a revision under section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as, "the Act") against the order of the Tribunal dated July 19, 2003 for the assessment year 1996-97. The applicant is a civil contractor and has executed the contract awarded by the Irrigation Department, Bijnor and Eastern Ganga Nahar. The cement and sariya were provided by the contractee. The assessee has used the bricks and ret bajri in the execution of works contract. The assessing authority has levied the tax on the estimated turnover of ret bajri at Rs. 3,00,000 on the ground that no purchase voucher has been produced. The exemption on the purchases of bricks for Rs. 6,28,000 has been allowed on the ground that the same has been purchased from the brick-kiln owner, who was under the compounding scheme. A proceeding under section 10B of the Act has been initiated. On a consideration of the reply filed by the assessee, the Deputy Commissioner (Executive), Trade Tax, Bijnor, passed an order dated December 21, 2001 wherein he has levied the tax on the turnover of bricks used in the execution of works contract. The tax has been levied on the ground that no purchase voucher has been filed and the assessee was not able to establish that the purchases were made from the brick-kiln owner, who was under the compounding scheme.

(2.) Aggrieved by the order of the Deputy Commissioner (Executive), Trade Tax, Bijnor, the assessee filed an appeal before the Tribunal. The Tribunal by the impugned order allowed the appeal, set aside the order passed under section 10B of the Act and restored the assessment order. The Tribunal has deleted the tax on the purchases of bricks on the ground that the assessee was neither the manufacturer nor importer of the bricks. The argument of the State Representative that point of tax is not material for the purposes of determining the tax liability under section 3F of the Act has been rejected.

(3.) Heard Sri B.K. Pandey, learned standing counsel and Sri Kunwar Saksena, learned counsel appearing on behalf of the assessee.