KAPOOR FIRE WORKS Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) These eleven revisions are by different dealers against common orders dated 17.12.2003 and 5.3.2004 passed by the Trade Tax Tribunal Bench-II, Agra under Sections 10 and 22 of the U.P. Trade Tax Act (hereinafter to referred as the Act) respectively. Common questions of law are involved, therefore, they were heard together and are being decided by a common judgment.

(2.) The State Government in exercise of power conferred under Section 7-D of the Act, floated a scheme popularly known as composition/compounding scheme 1994. The said scheme is dated 24th May, 1994 and is applicable to the assessment year i.e. 1994-95, which is the relevant assessment year involved in all these cases. The said scheme is applicable only to small dealers whose turnover for the immediately preceding assessment year 1993-94 in U.P. and Central was not more than Rs. 5 Lakhs and in the assessment year 1994-95 they fulfill the conditions enumerated therein and are not excluded by Clause-2 of the said scheme. The said Clause-2 lays down three eventualities but for the purposes of the present case condition No. 2 (ka) and 2 (ga) are relevant, wherein it has been provided that the scheme shall not be applicable in respect of such dealers who do not carry on any sale in the State of U.P. and all their sales are inter-state sales and secondly, the taxable turnover of such dealer exceeds Rs. 7 Lakhs for any reason for the assessment year 1994-95 including the sales in U.P. and inter-state sales. Thus, a dealer whose taxable turnover exceeds Rs. 7 Lakhs inclusive of central sales for the assessment year 1994-95 would not be entitled to avail the benefits under the said scheme.

(3.) Except M/s. Chandana Traders none of the applicants were registered as a dealer under the Act for the assessment year 1993-94, but they applied for and were granted registration by the Assessing Officer for the relevant assessment year namely 1994-95. M/s. Chandana Traders was already a registered dealer.