COMMISSIONER TRADE TAX Vs. LEASING AND FINANCE LTD

JUDGEMENT

(1.) These three revisions under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the "Act) are directed against the order of the Tribunal dated 31st August, 1995 relating to the assessment years, 1987 88, 1989-90, 1990-91, under the Central Sales Tax Act by which Tribunal has cancelled the penalty levied under Section 10-A of the Central Sales Tax Act.

(2.) Brief facts of the case are that the dealer opposite party (hereinafter referred to as "Dealer" was a Leasing company. Dealer purchased certain machinery from outside the state of U.P. and given on lease to the parties outside the State of U.P. and while making purchases the dealer issued Form-C to the Ex-U.P. parties Assessing Authority levied the penalty under Section 10-A of the Act for the alleged violation of Section 10(d) of the Act. It is alleged that the opposite party issued form-C but have not sold such machinery inside the State of U.P. nor under the Central Sales Tax Act inasmuch as the definition of sale under the Central Sales Tax Act did not include the lease transaction. Dealer tiled appeal before the Deputy Commissioner (Appeals) Trade Tax, Kanpur. Deputy Commissioner (Appeals) allowed the appeal and remanded back the matter to the assessing officer. First appellate authority held that on the fact of the case, there was no violation of Section 10(d) of the Act. First appellate authority however, observed that the dealer while issuing Form-C had made wrong declaration that it was registered, while it was not registered at Rajasthan where the machinery have been given on lease. Appellate Authority remanded back the matter to the assessing officer with the direction to (issue a notice specifying] under which clause default was committed and thereafter pass the penalty order. Dealer filed appeal before the Tribunal. Tribunal vide impugned order set aside the order of the first appellate authority as well as order of the assessing authority and quashed the penalty levied under Section 10-A of the Act.

(3.) Heard learned counsel for the parties.