PASWARA PAPERS LTD Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) Present revision under Section 11 of UP. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 29th March, 2000 relating to the assessment year, 1997-1998

(2.) Applicant is a registered dealer under the U.P. Trade Tax Act and Central Sales Tax Act and was granted eligibility certificate under Section 4-A of the Act. According to it the turnover was not liable to tax. Applicant was using coal as a fuel in the manufacturing of its product. As per Circulars dated 26th July, 1996, 23rd September, 1996 and 23rd May, 1997 which are Annexures 3, 4 and 5 of the revision petition, no security was required to be taken for the import of the coal required for use as a fuel from the registered dealer. Applicant was accordingly issued declaration form, namely, Form 31 as provided under Section 28-A of the Act for the import of coal without any security for use as a fuel. The Form was issued for the import of 10 Tonnes of coal. During the year under consideration, while importing the coal more than 10 Tonnes applicant made voluntarily declaration at the check post in respect of the excess quantity of coal. In respect of excess quantity of coal, check post officer taken the deposit and issued the receipt. The receipt was issued for compounding fee. The total amount deposited was to the extent of 2,52,702/-. The applicant sought for adjustment of the amount of Rs. 2,52,702/- with the amount of tax payable, but the same was refused on the ground that the nature of the deposit was compounding fee and not the security. Tribunal also denied the adjustment of the disputed amount on the ground that the amount was deposited as a compounding fee.

(3.) Heard learned Counsel for the parties.