COMMISSIONER TRADE TAX Vs. BHARAT METAL WORKS

JUDGEMENT

(1.) These three revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal dated 29.07.1995 relating to the assessment years 1987-88, 88-89 and 89-90. In all the aforesaid revisions following common question has been raised:

(2.) Dealer/opposite party (hereinafter referred to as "Dealer") was carrying on the business of manufacture and sales of caste iron goods. During the year under consideration, apart from the sale price of the goods, dealer had charged a sum of Rs. 12,440/-, Rs.51,430/- and Rs.33,960/towards development charges for the. assessment years 1987-88, 88-89 and 89-90. It was explained before the assessing authority that in cases where under the contract a separate pattern is required to be developed, a separate charge for the preparation of the pattern was charged as a development charges. The patterns were used for the purpose of casting and they have been retained by the dealer and have not been passed to the customers.

(3.) According to the dealer development charges was not the part of the turn over, in as much as no sale of any good was involved. Assessing authority, had not accepted the plea of the dealer and treated the development charges as part of the turn over First appellate authority allowed the appeal. Appeals filed by the Commissioner of Trade Tax were rejected by the Tribunal.