COMMISSIONER OF SALES TAX Vs. CHANDRA RICE MILL

JUDGEMENT

(1.) This revision is directed against the order dated December 24, 1991 passed by the Trade Tax Tribunal, Bench II, Moradabad in Appeal No. 935 of 1991.

(2.) The dealer-opposite party is a rice miller and is registered both under the U. P. Sales Tax Act, 1948 as well as the Central Sales Tax Act, 1956. They are also holding recognition certificate granted under Section 4-B of the U. P. Sales Tax Act for the purposes of manufacturing rice out of paddy. The present revision arises out of penalty proceeding under Section 4-B(6) of the U. P. Sales Tax Act. The dealer-opposite party has sent the notified goods, i.e., rice, after manufacturing it on consignment basis at Rs. 3,50,192.50. The department took an objection that the dealer-opposite party has violated the terms of Section 4-B of the Act and initiated penalty proceedings on this transaction. The case of the dealer-opposite party in the penalty proceeding was that it has deposited tax on the corresponding paddy for the manufacture of aforesaid rice. The assessing authority by order dated June 29, 1991 imposed penalty amounting to Rs. 28,015. The order was confirmed by the first appellate authority by its order dated November 30, 1991. The Tribunal has set aside this order of penalty and remanded the case to the first appellate authority on the ground that appeal against the assessment order has already been remanded by the Tribunal for decision to the first appellate authority. Therefore, the penalty matter should also be remanded. Prima facie the Tribunal was of the view that since the dealer-opposite party has paid tax on the paddy consumed in the manufacture of rice proportionately, the question of levy of penalty does not arise. Feeling aggrieved against the aforesaid order the Commissioner of Sales Tax has filed the present revision under Section 11 of the U. P. Trade Tax Act.

(3.) Heard learned Counsel for the parties and perused the record.