COMMISSIONER, TRADE TAX Vs. HINDON RUBBER PVT. LTD.

JUDGEMENT

(1.) THE following questions of law have been framed in the memo of revision:

(2.) WHETHER , under the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that the beltings are not covered under Notification No. ST -2 -5784/x -10(2)/80 -U.P. Act -15 -48 -Order -81 dated September 7, 1981 as beltings of all kinds taxable at the rate of eight per cent?

(3.) STRONG reliance was placed by the learned Standing Counsel on a decision of apex court in the case of Commissioner, Sales Tax v. Agra Belting Works, [1987] 66 STC 1 :, [1987] UPTC 850. The said decision is distinguishable on facts and is not applicable herein. The commodity involved therein was cotton fabric which was exempted by a notification dated November 25, 1958 under Section 4 of the Act but by a subsequent notification issued under Section 3A dated December 1, 1973 it was included within "belting of all kinds" taxable with effect from December 1, 1973. The apex court in the majority judgment has disapproved the view of the High Court. The High Court had held that a notification of recall of exemption is a condition precedent to impose tax at any prescribed rate by a valid notification under Section 3A in respect of a commodity earlier exempted under Section 4. It was held by the apex court that the second notification issued under Section 3A can easily be treated as a combined notification both for withdrawal of exemption and also for providing higher tax. In the case on hand, the position is in the reversed order. The notification levying tax issued under Section 3A is earlier in point of time and the notification granting exemption is subsequent thereto.