COMMISSIONER TRADE TAX Vs. KANCH UDYOG SAHKARI SAMITI

JUDGEMENT

(1.) Present three revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal dated 21st February, 1997 relating to the assessment years. 1983-84. 1984-85 and 1985-86.

(2.) Opposite party is a Cooperative Society and engaged in the distribution of coal to its member on the basis of the allotment of coal by the Joint Director of Industries. During the aforesaid years, opposite party had purchased coal and thereafter distributed the said coal to its member on consideration. The claim was that it was not the dealer within the definition of Section 2(c) of the Act and the distribution of coal to its member was not the sale within the meaning of Section 2(h) of the Act. Aforesaid claim was not accepted by the assessing authority and the assessing authority treated the opposite party as a dealer; its activity of distributing the coal to its member as a business; and the supply of coal to the members as a sale and, accordingly, the tax on the price was levied. Opposite party filed appeals before the Assistant Commissioner (Judicial). Assistant Commissioner (Judicial) vide order dated 30.11.1991 allowed the appeals and deleted the tax. It was held that the opposite patty was not the dealer and the distribution of coal was not the sale. Commissioner of Trade Tax filed appeals before the Tribunal. Tribunal by the impugned order rejected the appeals.

(3.) Heard learned Counsel for the parties.