INDIAN FARMERS FERTILSER COOP. LTD Vs. COMMISSIONER

JUDGEMENT

(1.) The above Trade Tax Revisions have been filed against the order of the Commissioner, Commercial Tax Tribunal dated 7.3.2013. The revisionist-M/s Indian Farmers Fertilizer Coop. Ltd. ( Hereinafter referred to as the 'IFFCO') 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 revisionist 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 21 of the Act, 1948 for levying tax on the entire price of NPK 10:26:26. The Assessing Authority by order dated 16.1.2003 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 IFFCO filed an appeal before the Additional Commissioner, who has also dismissed the appeal by his order dated 23.12.2010. 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 7.3.2013.

(3.) Hence this revsion.