COMMISSIONER SALES TAX Vs. AGRAWAL ROLLING MILLS

JUDGEMENT

(1.) These two revisions relate to assessment years 1979-80 and 1978-79 respectively. These revisions arise out of proceedings under Section 21 of the U.P. Sales Tax Act, 1948 (hereinafter referred to as "the Act").

(2.) The opposite-party is a dealer and deals in the manufacture and sale of sheets and circles made out of non-ferrous metal. The disclosed turnover was accepted by the assessing officer. Notices issued under Section 21 of the Act for taxing the turnover at higher rate with regard to sales made to certain customers was discharged by the assessing officer ; but the said order was set aside by the Deputy Commissioner (Executive) in exercise of power under Section 10-B of the Act on the finding that the dealer has not been able to show that the sales made by it to certain dealers were for the purposes of manufacture of brassware. The Deputy Commissioner (Executive) concluded that in respect of certain sales of sheets and circles, the dealer could not produce the certificate from the purchasing dealers that the goods were used in the manufacture of brassware. Consequently, treating the said items as unclassified one higher rate of tax was imposed. The Tribunal in Second Appeals Nos. 248 and 249 of 1987 vacated the order passed under Section 10-B of the Act mainly on basis of a circular issued by the Commissioner of Sales Tax in consultation with the Law Department. Secondly, the Tribunal also placed reliance upon its earlier order passed in second Appeal No. 250 of 1987 inter-parties.

(3.) Heard Sri Krishna Mohan Sahai, learned Standing Counsel in support of the revision and Sri Rakesh Ranjan Agrawal for the dealer.