ALLAHABAD WIRE DRAWING INDUSTRIES PRIVATE LIMITED Vs. UTTAR PRADESH SMALL INDUSTRIES CORPORATION LIMITED

JUDGEMENT

(1.) This writ petition has been filed for a mandamus directing the respondents to refund the entire amount of sales tax/trade tax charged by the respondents amounting to Rs. 16,09,560.61 alongwith interest with rebate allowed by Steel Authority of India Ltd., under the Memorandum of understanding (MOU) Scheme.

(2.) We have heard the learned counsel for the parties and perused the writ petition, counter-affidavit, supplementary affidavit and the rejoinder affidavits.

(3.) The petitioner is a Private Limited Company incorporated under the Indian Companies Act and is carrying on the business of manufacture of wire for which the raw material is iron and steel namely wires rods, etc. The petitioner is registered both under the U.P. Trade Tax Act and the Central Sales Tax Act and has been granted recognition certificate under Section 4-B of the U.P. Trade Tax Act, 1948 in respect of wire rods, angles, iron, etc., as raw material for the manufacture of wires, vide annexure-1. The petitioner had purchased wire rods from respondents, which he used for manufacturing wires. Since the petitioner was holding recognition certificate under Section 4-B of the Act, he has alleged that he was entitled to purchase the raw material, i.e., wire rods, etc., against form III-B, the declaration form in accordance with Section 4-B (2) of the Act read with Rule 25-B of the U.P. Trade Tax Rules, 1948. Section 4-B(2) is quoted in paragraph 5 of the writ petition, and Rule 25-B in paragraph 6 of the petition. During the assessment year 1994-95 the petitioner purchased wire rods from the respondents after payment of tax at the rate of two per cent against form III-B (3 Kha), which was charged by the respondents. Photocopies of a few invoices have been enclosed as annexure 1 collectively to the writ petition. The petitioner made these purchases from June 1, 1994 as stated in paragraph 8 of the writ petition.