COMMISSIONER TRADE TAX Vs. RAJSHREE ROLLER FLOUR MILL

JUDGEMENT

(1.) Present revision under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the "Act") is directed against the order of the Tribunal dated 13th March, 1995 relating to the assessment year, 1986-87.

(2.) Following question has been raised in the present revision. "Whether on the facts and in the circumstances of the case is learned Tribunal legally justified to grant the exemption on the purchase of wheat made upto the 3.6.1986 from the open market on which the assessee has accepted his tax liability by issuing Form 3-C (1) also and even when the assessee has not followed the conditions as prescribed in the Notification No. ST-U-6467/X-6(29)-76 U.P. Act-XV-48 Order-79/18.07.79."

(3.) Brief facts of the case are that the dealer/opposite party (hereinafter referred to as "Dealer") was engaged in the business of manufacture of Atta, Maida and Suji. Wheat was raw-material for the manufacture of Atta, Maida and Suji. Dealer was granted recognition certificate under Section 4-B of the Act for the purchase of wheat at the concessional rate for the manufacture of Atta, Maida and Suji on 10.12.1985 w.e.f. 09.12.1985. In the said recognition certificate on 04.06.1986, assessing authority added, " wheat purchased from Food Corporation of India only". During the year under consideration, dealer purchased wheat in an open market from the dealer other than Food Corporation of India against Form 3-C (1). The purchases of wheat was otherwise liable to tax in the hand of the dealer being first purchaser, but the dealer claimed exemption on such purchases being recognition holder under Section 4-B of the Act. Assessing authority had not accepted the claim of the dealer on the ground that under the Notification ST-II-6467/X-6(29)-76 U.P. Act-XV-48 Order-79 dated 18.07.79 purchases of wheat from Food Corporation of India was only exempted. Dealer filed appeal before the Deputy Commissioner (appeals), which was allowed in part. Deputy Commissioner (appeals) held that the recognition certificate was amended w.e.f. 04.06.1986 restricting purchase of wheat from Food Corporation of India only, therefore, the purchases of wheat prior to 04.06.1986 made from the dealer other than Food Corporation of India was exempted from tax under the recognition certificate, and the purchases after 04.06.1986 was liable to tax. Dealer as well as Commissioner of Trade Tax filed appeals before the Tribunal. Tribunal by the impugned order rejected both the appeal.