COMMISSIONER TRADE TAX Vs. NOORIE MANURE MILL

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 30th November, 1998 relating to the assessment year, 1992-93 under the Central Sales Tax Act.

(2.) The short question involved in the present revision relates to the taxability of the "Crushed Horns and Hoofs". The dealer-opposite party (hereinafter referred to as "dealer") claimed that it is not liable to tax on the turnover of Crushed Horns and Hoofs under the Central Sales Tax Act being exempted under the U.P. Trade Tax Act, while it has been taxed by the assessing authority treating it as crushed bones taxable under the notification No. 6583 dated 30th September, 1982. The claim of the dealer was rejected on the ground that it was not exempted from tax being covered under crushed bones. First appeal filed by the dealer was allowed. It was claimed before the appellate authority that crushed horns and hoofs were exempted from tax under the U.P. Trade Tax Act under the Notification No. 6569 dated 12.9.1986. First appellate authority accepted the claim of the dealer and granted exemption on the central sales in view of Section 8(2-A) of the Central Sales Tax Act. Commissioner of Trade Tax filed appeal before the Tribunal. Tribunal by the impugned order, rejected the appeal of the Commissioner of Trade Tax. Tribunal held that under the notification No. 6569 dated 12.9.1986 "Horns. Comb and all other articles made from Horns" are exempted from tax under Section 4 of the U.P. Trade Tax Act. Tribunal further held that Horns and Hoofs are also not liable to tax under the entry "Bonesin cluding horns and hoofs but not including crushed bones". Tribunal held that from the aforesaid entry only crushed bone has been excluded and not "Crushed Horns and Hoofs". Tribunal also observed that Horns and Hoofs are used as fertilizer and not used for any other purpose and fertilizer is exempted from tax.

(3.) Heard learned Counsel for the parties.