GODAVARI FERTILIZERS & CHEMICALS LTD Vs. COMMISSIONER

JUDGEMENT

(1.) THE above Trade Tax Revisions have been filed against the order of the Commissioner, Commercial Tax Tribunal dated 21.10.2013. The revisionist -M/S. Godavari Fertilizers & Chemicals Ltd. is a multi State Cooperative Society under the control of the Ministry of Agriculture Department of Chemicals and Fertilizers, Govt. of India. It is engaged in the business of manufacture and sale of chemical fertilizers. The prices on which chemical fertilizers are required to be sold by the revisionists are also fixed by the Government of India and the company cannot sell the chemical fertilizer at any rate or price other than that fixed by the Government of India. For the various assessment years tax was imposed on the nitrogen component at the rate of 6.5% on the sale of NPK 10:26:26. The facts, which are not in dispute is that the NPK was being sold in the ratio 10:26:26. However, the Assessing Authority initiated reassessment proceedings under Section 41(8) of the U.P. Trade Tax Rules, 1948 for levying tax on the entire price of NPK 10:26:26. The Assessing Authority by order dated 11.6.2010 held that although there was a tax liability on the Nitrogen component but since there is no exemption in respect of Phosphate and Potassium contents of the fertilizer, these items would also be liable for tax.

(2.) AGGRIEVED the revisionists filed an appeal before the Additional Commissioner, who has also dismissed the appeal by his order dated 3.3.2012. Thereafter the revisionist has filed a second appeal under Section 10 of the U.P. Trade Tax Act read with Section 57 Value Added Tax before the Commissioner Tribunal Lucknow which too dismissed the appeal by the impugned order dated 21.10.2013.

(3.) I have heard Sri. S.M.K. Choudhary, learned Senior Counsel assisted by Sri. Saharsh for the revisionist and Sri. Sanjieve Shankhdhar, learned counsel for the Revenue.