GAYADEEN KAILASHCHANDRA Vs. COMMISSIONER COMMERCIAL TAX

JUDGEMENT

(1.) The assessee is engaged in manufacturing of rice. It purchases paddy and issues Form 3 C (1) to the purchaser, which certifies that tax on such commodities stands paid. It transpired that the assessee although had not deposited tax, and was not entitled to issue Form 3 C (1), yet it was issued. In the assessment proceedings orders were passed against the assessee and the matter was brought to this Court at the instance of the assessee in Sales/Trade Tax Revision No. 906 of 2003, which was disposed off vide following orders on 4.10.2010:-

(2.) Pursuant to remand, the issue that required consideration was that as to whether in respect of sale for which Form 3 C (1) was wrongly issued, the assessee has been assessed to tax and it has deposited it. The Trade Tax Officer vide its order dated 29.1.2000 has recorded that in respect of such sales, tax was levied upon the assessee, and that it was subsequently adjusted from the monetary limit of the assessee. This Court in Commissioner, Trade Tax, U.P. Lucknow v. S/s Shri Mahaveer Rolling Mills (p) Ltd., Fazal Ganj, Kanpur, 2010 UPTC 977 has been pleased to hold that such adjustment allowed to dealer would amount to payment of tax. Para 13 of the judgement clearly records that once exemption is allowed and deducted from the monetary limit, it will amount to tax paid by way of adjustment. Since in the facts of the present case, the amount of tax in law, stands paid, as such, no liability could be imposed now upon the assessee for payment of tax under Section 3-B of the Act.

(3.) The question posed for consideration is answered accordingly.