COMMISSIONER, TRADE TAX Vs. D.C.M. LIMITED

JUDGEMENT

(1.) PRESENT three revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as 'Act') are directed against the orders of Tribunal dated 28.07.1997 and 29.10.1997 relating to the assessment years, 1984 -85. 1985 -86 and 1986 -87.

(2.) IN all the three years one common question, namely, whether the supply of Mustard Oil by M/S Shree Durga Industries, Fatehabad Road. Agra was the sale on principal to principal basis or after the manufacturing of such oil by M/S Shree Durga Industries, Fatehabad Road, Agra, the opposite party had made the first sale therefore, liable to tax.

(3.) IN all the three years, the dealer/opposite party (hereinafter referred to as 'Dealer') claimed to have purchased oil. manufactured by M/S Shree Durga Industries, Fatehabad Road. Agra, on principal to principal basis under the agreement dated 09.01.1985 and sold the same within the State of U.P. Exemption was claimed on the sale of such Mustard Oil. purchased from M/S Shree Durga Industries, Fatehabad Road. Agra, on the ground that the dealer was neither manufacturer nor importer of such oil and, therefore, such oil was not liable to tax in the hand of the dealer. Assessing authority on the basis of the terms of the agreement dated 09.01.1985 held that M/S Shree Durga Industries. Fatehabad Road. Agra had manufactured the oil as per the directions of the dealer and the first sale after the manufacture of oil was made by dealer company and. therefore. held the dealer liable to tax. The view of the assessing authority has been upheld in first appeals. Tribunal by the impugned order deleted the tax. Tribunal held that the dealer had purchased the oil on principal to principal basis in terms of the agreement and the first sale was made by M/S Shree Durga Industries. Fatehabad Road, Agra after the manufacturing of oil and not by the dealer.