CASTROL INDIA LIMITED Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) PRESENT eight revisions under Section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as, 'the Act') are directed against the order of the Tribunal dated June 20, 2007 for the assessment years 1990 -91, 1991 -92, 1992 -93, 1993 -94, 1994 -95, 1995 -96 and 1996 -97. Trade Tax Revision No. 1221 of 2007 for the assessment year 1993 -94 is under Section 22 of the Act.

(2.) THE brief facts of the case are that the applicant is a limited company having its registered office at Mumbai and the branch office in the State of U.P. at Agra. The applicant was carrying on the business of manufacturing and sales of lubricants and grease. It appears that the applicant at the end of the financial years allowed certain amounts towards sale promotion to its customer and during the course of the assessment proceeding such amounts were deducted from the total taxable turnover. The claim of the applicant was that the nature of the payment was of discount. The assessing authority has disallowed the claim of the applicant. Being aggrieved by the order, the applicant filed the appeals before the Deputy Commissioner (Appeals) Trade Tax, Agra. The Deputy Commissioner (Appeals), Trade Tax, Agra allowed the appeals and accepted the claim of the applicant. Being aggrieved by the order of the Deputy Commissioner (Appeals), the Commissioner of Trade Tax filed appeals before the Tribunal. The Tribunal by the impugned order allowed all the appeals and remanded back the matter to the assessing authority for afresh assessment and adjudication.

(3.) THE learned Counsel for the applicant submitted that in the present case the question involved is pure question of law in which no investigation of fact is required. So far as the fact is concerned, they are admitted and no further inquiry or investigation of fact is required and on the stated fact a legal decision has to be taken whether the amount paid by the applicant to the purchaser at the end of the year is liable to be deducted from the turnover under the provisions of the U.P. Trade Tax Act. He submitted that the remand of the case to the assessing authority to adjudicate the issue afresh is nothing but providing a fresh innings to adjudicate the issue. He submitted that various reasons given by the Tribunal in the order for remanding back the case are wholly irrelevant considerations.