PAWANSUT TRADING COMPANY THROUGH ITS PARTNER, SRI VIJAY KUMAR GUPTA SON OF LATE M.L. GUPTA Vs. THE COMMISSIONER OF TRADE TAX

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 17.10.2006 relating to the assessment year 2003 -04.

(2.) APPLICANT was carrying on the business of food grains etc. During the period 16.12.2003 to 31.03.2004 applicant had sold paddy for Rs. 1,92,82,753/ - to rice miller against Form Ill -B and admitted tax @ 2%. The normal rate of tax on paddy was 4%. Assessing authority rejected the claim of concessional rate of tax against Form III -B and levied the tax (a). 4% on the aforesaid sale. Order of the assessing authority has been upheld in first appeal and by the Tribunal. Tribunal held that under notification No. KA.NI -2 -5107/XI -7(159)/91 -U.P. Act -15 -48 -Order (34) -2003, dated 12.12.2003 benefit under Section 4 -B was available only to the dealers holding recognition certificate. It has been held that by the aforesaid notification earlier notification No. KA.NI -/XI -7(159)/91 -U.P. Act -15 -48 -Order, dated 17.02.2000 has been superceded. It has been held that since applicant is not holding recognition certificate and had sold paddy to rice millers holding the recognition certificate, thus, the benefit of the concessional rate of tax under the aforesaid notification No. KA.NI -2 -5107/XI -7(159)/91 -UP. Act -15 -48 -Order (34) -2003, dated 12.12.2003 is not admissible to the applicant.

(3.) LEARNED Counsel for the applicant submitted that notification No. KA.NI -2 -5107/XI -7(159)/91 -U.P. Act -I5 -48 -Order (34) -2003, dated 12.12.2003 has been issued under Section 4 -B of the Act, which means issued under all sub -sections and clauses namely, under Section 4 -B(1)(a), Section 4 -B(1)(a -1) and Section 4 -B(1)(b) of the Act.Therefore under notification No. KA.Nl -2 -5107/XI -7(159)/91 -U.P. Act -15 -48 -Order (34) -2003, dated 12.12.2003 the benefit is also available to those dealers, who are not holding recognition certificate on their sales. He submitted that the notification No. KA.NI -2 -5107/XI -7(159)/91 -U.P. Act -15 -48 -Order (34) -2003, dated 12.12.2003 which says subject to the conditions and restrictions specified in Section 4 -B of the Act, the tax shall be payable at the rate specified in Column 4 of the annexure on the sale to or as the case may be purchases by a dealer holding recognition certificate under Sub -section (2) of Section 4 -B of the Act, covers the sale of the goods to a dealer holding valid recognition certificate under Sub -section (2) of Section 4 -B of the Act. Under the notification in case of declared goods, the tax was payable @ 2%.