COMMISSIONER TRADE TAX Vs. PAINTS INDIA

JUDGEMENT

(1.) Present revision under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 14.10.1999 relating to the assessment year 1991-92.

(2.) Dealer/opposite party (hereinafter referred to as "Dealer") was engaged in the business of manufacture and sale of paint, varnishes and synthetic resin. Dealer was holding recognition certificate under Section 4-B of the Act for "paint and all kinds of allied material" Dealer was entitled for purchase of raw material without any tax. During the year under consideration, dealer had purchased raw material without payment of tax against Form 3-B and used such material in the manufacturing of synthetic resin. Synthetic resin was sold as such. Assessing authority levied the penalty under Section 4-B(5) of the Act on the ground that dealer was not holding recognition certificate for synthetic resin and had used raw material in the manufacturing of synthetic resin in violation of provision of Section 4-B of the Act. First appeal filed by the dealer was allowed. Tribunal by the impugned order confirmed the order of first appellate authority. Tribunal held that synthetic resin is covered under "All kinds of allied materials" for which dealer was holding recognition certificate under Section 4-B of the Act and thus, there was no violation of Section 4-B of the Act. Tribunal while coming to the conclusion that it is one of allied material required for use in the manufacturing of paint, relied upon the certificate issued by Sri M.S. Saxena an expert from HBTI of Oil and Paint Technology Department.

(3.) Heard learned Counsel for the parties.