SURAJ AUTOMOBILES LIMITED Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) Present two revisions under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the "Act") are directed against the order of the Tribunal dated 17th August, 1999 relating to the assessment year, 1993-94.

(2.) Revision No. 1185 of 1999 filed by the applicant and revision No. 703 of 2000 filed by the Commissioner of Trade Tax.

(3.) In the revision filed by the applicant, the dispute relates to the rate of tax on the three-wheeler from 1.6.1993. The applicant had accepted the tax liability at the rate of five percent, whereas the assessing authority levied the tax at the rate of 10 percent. Assessing authority also demanded the interest under Section 8(1) of the Act treating the tax assessed on such three-wheeler as admitted tax. First appeal filed by the applicant failed. Applicant filed second appeal before the Tribunal. Tribunal by the impugned order partly allowed the appeal. Applicant claimed that the three-wheeler from 1.6.1993 was liable to tax at the rate of five percent. Levy of tax at the rate of 10 percent has been upheld. Tribunal, however, held that the tax levied cannot be treated as admitted tax and the interest under Section 8(1) of the Act cannot be demanded in view of the fact that the applicant all alone contesting the rate of tax bonafidely and at no stage, tax has been admitted.