COMMISSIONER, TRADE TAX Vs. PADAM GRAMODYOG SAMITI

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 1st December, 2003 relating to the assessment year, 1998-99.

(2.) Dealer/opposite party (hereinafter referred to as "Dealer") was engaged in the business of manufacture and sale of detergent cake, detergent powder, toilet soap and laundry soap. Dealer had two manufacturing units. One situated at village Bijaura, post office Bhawar Nath, Azamgarh where detergent soap and toilet soap were manufactured and another unit was situated at Munda Jafarpur, Azamgarh where detergent powder and laundry soap were manufactured. Dealer claimed exemption on the turnover of the manufactured goods being unit of Khadi Gramudyog under Notification No. ST-1I-709/XI-9(53)/91-UP-Act-15-48-Order-97 dated 27th February, 1997. There is no dispute that the dealer is an institution certified by All India Khadi and Village Industries Commission or U.P. Khadi Village & Industries Board, Assessing authority disallowed the claim of exemption on the entire turnover on the ground that the turnover exceeded Rs. 50 lacs. Assessing authority was of the view that the exemption under the aforesaid Notification was available to only those institutions where total turnover in assessment year was less than Rs. 50 lacs. Dealer filed appeal before the Deputy Commissioner (Appeals). Deputy Commissioner (Appeals) allowed the appeal in part. Appellate authority has held that the institution was eligible to exemption upto the turnover of Rs. 50 lacs and held liable to tax on the turnover of Rs. 36,86,6937-. Against the order of the first appellate authority, dealer as well as Commissioner of Trade Tax filed appeals before the Tribunal. Tribunal allowed both the appeals in part and set aside the order of the first appellate authority and remanded back the matter to the assessing authority with the direction to allow the exemption on the turnover upto Rs. 50 lacs on each individual products manufactured by the institution which is covered under the Notification. Tribunal was of the view that each individual item mentioned in the Notification was eligible for exemption on the turnover of Rs. 50 lacs.

(3.) Heard learned counsel for the parties.