VEGETABLE INDUSTRIES COMPLEX Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) The present trade tax revision has been preferred under Section 11 of the U.P. Trade Tax Act, 1948, in short "Act" against the order dated September 23, 2000 passed by Trade Tax Tribunal in Second Appeal No. 150 of 1999 (1990-91) in reference Rule 41(7) of the U.P. Trade Tax Rules, 1948 and 151 of 1999 (1990-91) in respect of Section 10-A (Central Sales Tax Act, 1956). Heard Sri Bharat Ji Agrawal, Senior Advocate, with Sri Piyush Agrawal, for the applicant and Sri B.K. Pandey, learned Standing Counsel for the respondent.

(2.) It appears that the applicant/revisionist a Co-operative Federation Limited, Lucknow, is controlled by Government of U.P. and is engaged in the manufacture and sale of edible and non-edible oils and cakes. The applicant was granted registration under Rule 5(1) of the Central Sales Tax (Registration and Turnover) Rules, 1957. By virtue of it, the applicant/revisionist is entitled to purchase the goods, raw material on concessional rate which was used in production of notified goods. In the said certificate mill store, iron hard ware, machinery spare parts, etc., were duly mentioned. In the year 1991 in question, the applicant had purchased steel plate and steel tubes which were used for repairing of the machinery and the applicant under bona fide belief issued form C since in the registration certificate "iron" was specifically mentioned along with spare parts.

(3.) The assessing authority passed an order on March 27, 1995 (annexure 2) imposing penalty of Rs. 20,000 under Section 10-A of the Central Sales Tax Act. The first appeal preferred under Section 9 of the Act before the Deputy Commissioner (Appeal), Trade Tax, Bareilly, was dismissed on March 23, 1999 (annexure 3). Being aggrieved the applicant filed second appeal under Section 10 of the "Act" before Tribunal and by order dated September 23, 2000 (annexure 5) learned Tribunal has dismissed the appeal and confirmed the imposition of penalty.