GUPTA ENGINEERING WORKS Vs. STATE OF U P

JUDGEMENT

(1.) This writ petition has been filed against the impugned order dated 3.1.1994, Annexure 6 to the petition and for quashing the impugned circular letter dated 5.10.1993, Annexure 5 to the petition.

(2.) We have heard Sri Sudhir Chandra, learned Counsel for Petitioner and Sri S. P. Gupta, learned Counsel for Respondent No. 3.

(3.) The Petitioner No. 1 claims to be a registered dealer having its place of business at Faridabad in Haryana. Petitioner Nos. 2 to 5 are partners of Petitioner No. 1 which is engaged in manufacture of wood wool, wooden boxes, etc. It is alleged in para 2 of the petition that the Petitioners have no works in Uttar Pradesh nor do the Petitioners have any business interest in Uttar Pradesh. The Petitioners purchase timber from the Uttar Pradesh Forest Corporation, Respondent No. 3 which is used as raw material by the Petitioners for manufacturing its products. The Petitioners have been participating in auction sales held by the Corporation in various places in U.P. It is alleged that the Petitioners take delivery of the goods in U.P. and send it to Faridabad in Haryana. Petitioners are required to give an affidavit to the Corporation to the effect that the goods which have been purchased by the Petitioners have in fact been taken to Faridabad and for the purposes of manufacturing the products of the Petitioners. It is also alleged in para 9 of the petition that the sales made by the Forest Corporation are inter-State sales and hence only the Central Sales-tax applies and the Petitioners are liable to pay only 4% against Form C. However, as alleged in para 10, the Forest Department is charging 15% sales tax treating the transaction to be intra-State sales, which has been done in pursuance to the circular dated 5.10.1993 Annexure 5 to the petition is sued by the Commissioner, Sales Tax, U.P. There is another circular requiring the Petitioner to take transit passes before transporting its goods out of Uttar Pradesh. Petitioners claim that they are liable to pay 4% sales-tax under Central Sales Tax Act and they are not liable to pay 15% sales-tax under U.P. Trade Tax Act.