PRINCE INDUSTRIES Vs. COMMISSIONER, COMMERCIAL TAX

JUDGEMENT

(1.) These commercial tax revisions under section 58 of the U.P. Value Added Tax Act, 2008 have been preferred by the same dealer engaged in the business of manufacturing and sale of agricultural implements. The dealer purchases iron and steel scrap more precisely rail line scrap sold by the railways and utilize it for manufacturing farm implements. The sale of farm implements is exempted from tax whereas the residue sold after making farm implements is taxable. The dispute in the present revisions is regarding levy of entry tax under the provisions of the U.P. Tax on Entry of Goods Into Local Areas Act 2007 (hereinafter referred to as "the Act") on the rail line scrap purchased and brought into the local area by the dealer.

(2.) Section 4 of the above Act provides for the levy of tax and stipulates that the goods specified in the Schedule to the Act on being brought into a local area for consumption, use or sale from any place outside the local area shall be subjected to entry tax at the rate specified but not exceeding 5 per cent of the value of the goods.

(3.) Schedule to the Act has been provided by notification dated September 29, 2008. It contains 20 entries and entry No. 14 reads as under: