COMMISSIONER TRADE TAX Vs. OVJECT DE ART 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 12.11.1998 for the assessment year 1992-93.

(2.) Short question involved in the present revision relates to the taxability of replenishment Licenses (hereinafter referred to as "REP License") Dealer opposite party (hereinafter referred to as "Dealer") was the manufacturer and had been issued REP License by Deputy Chief Controller of Importer and Exporter, Moradabad. Dealer sold the said REP License for a sale consideration of Rs. 51,01,041/- Assessing authority had levied the tax on the sale consideration of REP License treating it as unclassified item. Before the assessing authority, dealer claimed that REP License was not the goods and the amount received was for the surrender of the said license. First appeal filed by the dealer was rejected. Dealer filed second appeal before the Tribunal. Tribunal allowed the appeal and deleted the tax levied on the sale consideration of REP License. Tribunal has held that REP License was an unclassified goods, liable to tax at the point of manufacturer or importer and since the REP License was issued by Deputy Chief Controller of Importer and Exporter, Moradabad, dealer was neither manufacturer nor importer.

(3.) Heard learned Counsel for the parties.