BIJLI COTTON MILLS Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) These five revisions under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as "Act) are directed against the order of Tribunal dated 26.05.1998 for the assessment years 1985-86, 86-87, 87-88, 88-89 and 89-90.

(2.) Applicant is a unit of National Textile Corporation, which is an undertaking of Government of India, engaged in the business of manufacture and sale of cotton yam etc. During the aforesaid years, applicant had purchased lubricant oil and used in the machines required for manufacturing. Assessing authority raised a demand under Section 3-G(3) of the Act on the ground that under Section 3-G(2) of the Act. applicant could not use the lubricant oil purchased against Form 3-D in the manufacturing of goods. Applicant filed appeals for the aforesaid years. First appellate authority deleted the demand for the assessment years 1985-86, 86-87 and 89-90 but upheld the demand for the assessment years 1987-88 and 88-89. Against the orders of the first appellate authority, Commissioner of Trade fax filed appeals for the assessment years 1985-86, 86-87 and 89-90 and the applicant filed appeals for the assessment years 1987-88 and -88-89. Tribunal by the impugned orders dated 26.05.1998 rejected the appeals of the dealer for the assessment years 1987-88 and 88-89 and allowed the appeals of the Commissioner of Trade Tax for the assessment sears 1985-86. 86-87 and 89-90 and restored the order of the assessing authority demanding the tax under Section 3-G(3) of the Act.

(3.) Heard learned Counsel for the parties.