COMMISSIONER TRADE TAX Vs. FARUQI GLASS INDUSTRIES

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 18.03.2000 relating to the assessment year 1996-97, by which Tribunal has deleted the penalty under Section 4-B (5) of the Act.

(2.) Brief facts of the case are that dealer/opposite party (hereinafter referred to as "Dealer") is registered both under the U.P. Trade Tax Act as well as Central Sales Tax Act and was holding recognition certificate under Section 4-B of the Act. Dealer was involved in the manufacturing of glass ware. Admittedly dealer purchased 347.47 MT soda ash as raw material against Form 3-B and availed the benefit of concessional rate of tax/exemption on such purchases. Under Section 4-B (2) of the Act dealer was required to use such soda ash in the manufacturing of glass ware, but instead of using such soda ash in the manufacturing of glass ware, same was sold for Rs. 31,61,910/-. Assessing authority initiated the proceedings under Section 4-B (5) of the Act on the ground that the dealer had disposed of soda ash other than for the purpose for which recognition certificate was granted and dealer was liable for penalty under Section 4-B (5) of the Act. In reply to the show cause notice, it was submitted that due to the leakage in the godown quality and the conditions of soda ash was deteriorated and was not useable and therefore, same was sold for Rs. 31,69,910/-, Assessing authority had not accepted the plea of the dealer and levied the penalty at Rs. 4,75,500/-. Being aggrieved by the order dealer filed appeal before the Deputy Commissioner (Appeals), which was dismissed. Dealer further filed appeal before the Tribunal. Tribunal by the impugned order allowed the appeal and set aside the order. Tribunal held that the dealer had given the information vide receipt No. 303/27-12-96 about the sale of soda ash but instead of it, assessing authority had not made any verification. Tribunal accepted the explanation of the dealer that soda ash was sold because the quality of soda ash was deteriorated due to the rainy season and moisture and was not fit for use as raw material. Tribunal further held that the dealer had purchased soda ash @ Rs. 11,196/- per MT and sold the same @ Rs. 9,122.50p. per MT, which shows that the quality of soda ash was deteriorated and in this view of the matter Tribunal deleted the penalty.

(3.) Heard Sri B.K. Pandey, Learned Standing Counsel. Despite the service of notice no one appears on behalf of the opposite party.