TATA CHEMICALS LIMITED, BABRALA, DISTT. BADAUN Vs. ASSISTANT COMMISSIONER (ASSESSMENT) TRADE TAX, BADAUN AND ANR.

JUDGEMENT

(1.) HEARD Shri Bharat Ji Agrawal, Sr. Advocate assisted by Shri Piyush Agrawal for the Petitioner. Shri S.P. Kesarwani appears for the department.

(2.) M /s Tata Chemicals Ltd. is aggrieved by the reopening of the assessment proceedings under Section 21(2) of the U.P. Trade Tax Act in respect of assessment years 1991 -92, 1992 -93 and 1994 -95. In Writ Petition No. 1982 of 1999 the notice dated 11.11.1999 for the assessment years 1991 -92, 1992 -93, 1994 -95 is sought to be quashed. In Writ Petition No. 1092 of 1999 notice dated 2.11.1999 for the assessment year 1993 -94 issued by the Addl. Commissioner, Trade Tax, Bareilly Zone, Bareilly is under challenge.

(3.) BRIEF facts giving rise to these writ petitions are that the Petitioner has established a factory for manufacture of fertiliser (Urea) at Babrala in the district of Badaun. The produced started in December, 1994. During the years 1991 -92 to 1994 -95 the factory was under construction. The Petitioner had given contract for construction of factory building. The material supplied by the Petitioner was taxed by the Asstt. Commissioner (Assessment), Trade Tax, Badaun -the Assessing Authority. The show cause notice for the assessment year 1991 -92 was issued on 7th March, 1995 stating that the Petitioner had supplied Tar steel to various contractors, which is liable to tax. After receiving reply the assessing authority by his order dated 23rd February, 1996 after detailed discussion of the contracts entered into between the Petitioner and business contractors namely Larsen and Tubro Ltd., has held that the supply of iron and steel does not amount to sale. The notional adjustment of the value of iron and steel was not treated as sale except an amount, which did not pertain to the contractors. The assessment order was rectified under Section 22 of the U.P. Trade Tax Act, on 5.8.1994.