COMMISSIONER OF TRADE TAX Vs. NEW UNIVERSAL TANNERY

JUDGEMENT

(1.) THE present revision is directed against the order dated April 8, 1994 passed by the Sales Tax Tribunal in Second Appeal No. 729 of 1985 for the assessment year 1978 -79. The facts of the present case lie in a narrow compass. The dealer -opposite party deals in raw hides and skins of animals. The assessing officer by the order dated May 29, 1982 for the assessment year 1978 -79 accepted the account books of the dealer. But the assessing officer has rejected the claim of exemption on the turnover of sales of tanned skins on the ground that the same was not sold to U.P. dealers in the course of export and as such the turnover was not liable for exemption under Section 5(3) of the Central Sales Tax Act, 1956. Form H was produced by the dealer in support of the claim. This plea of the dealer was not accepted by the first appellate authority as well as by the Tribunal and the levy of tax has been confirmed under Section 3AAAA up to the Tribunal stage. However, the Tribunal has set aside the order of the assessing officer, demanding interest under Section 8(1) of the Act. The present revision is directed against this portion of the order of the Tribunal.

(2.) HEARD the counsel for the parties and perused the record.

(3.) THE Tribunal deleted the levy of interest under Section 8(1) of the Act holding that the dealer -opposite party was bona fidely disputing the transaction in question as Central sales. It has placed reliance upon a division Bench judgment of this Court given in the case of Annapurna Biscuit Manufacturing Co. v. State of Uttar Pradesh [1982] 50 STC 56 : [1980] UPTC 1320.