COMMISSIONER TRADE TAX Vs. S S ARORA BROTHERS

JUDGEMENT

(1.) These two revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as 'the Act') are directed against the order of Tribunal dated 05.10.1999 relating to assessment years 1995-96 both under the U.P. Trade Tax Act as well as under the Central Sales Tax Act.

(2.) Dealer Opposite Party (hereinafter referred to as "the Dealer") was carrying on the business of Craft Papers. During the year under consideration. dealer claimed to have made sales of Craft Papers at Rs. 1,00,69.425 against Form 3-B and admitted liability of tax @ 2.5%. Under the Central Sales Tax Act. dealer had made inter-State sales for Rs. 60,396/- claimed to have made against Form-C and admitted liability of tax @ 4%, The Assessing Authority passed two ex-parte orders both under the U.P. Trade Tax Act as well as under the Central Sales Tax. Dealer moved two applications under Section 30 for setting aside the ex-parte orders. Both the applications under Section 30 were allowed and the ex-parte assessment orders were set aside, thereafter, fresh assessment orders were passed. The Deputy Commissioner (Executive) initiated a proceeding under Section 10-B of the Act on the ground that the orders dated 06.05.1998 passed by the Assessing Authority on the application under Section 30 were improper and erroneous on the ground that the dealer could not fulfill the condition of deposit of admitted tax. According to the Deputy Commissioner (Executive). Trade Tax dealer could not furnish Form 3-B for Rs. 1,20,850/- and hence, said amount was liable to tax at the higher rate of tax. According to the Deputy Commissioner (Executive). Trade Tax before moving the application under Section 30. higher rate of tax on the amount of Rs. 1,20,850/- should be deposited. Likewise, under the Cential Sales Tax Act. dealer could not furnish Form-C for the amount of Rs. 60396.- and thus, tax @ 10% should have been deposited which was not deposited before filing the application under Section 30 of the Act, The Deputy Commissioner (Executive), accordingly set aside the orders dated 06.5.1998 passed on the application under Section 10-B of the Act. Dealer filed two appeals before the Inbunal. Tribunal allowed both the appeals by the impugned orders. The Tribunal held that under Section 30 of the Act. tax admitted by the dealer were required to be deposited and not the amount of tax due under the Act. It is held that under the U.P. Trade Tax Act, dealer admitted tax liability at Rs. 2,51,982/- while a sum of Rs. 2,53,989/- was deposited before moving the applications under Section 30 of the Act and under the Central Sales Tax Act. tax liability was admitted at Rs. 2,416/- and the same amount was also deposited.

(3.) Heard learned Counsel for the parties.