PHOOLSON AGRICULTURAL INDUSTRIES Vs. COMMISSIONER SALES TAX

JUDGEMENT

(1.) These two revisions filed by the assessee arise out of a consolidated order dated 24th September, 1986 passed by the Sales Tax Tribunal, Bench II, Meerut, in respect of the liability of the assessee to sales tax both under the U. P. Sales Tax Act as well as under the Central Sales Tax Act for the assessment years 1977-78 and 1978-79 in so far as liability under the U. P. Sales Tax Act is concerned and for the assessment year 1976-77 for liability under the Central Sales Tax Act.

(2.) The assessee during the said years carried on the business of manufacture and sale of "double plated rims" used in vehicles needed for agricultural purposes. The Sales Tax Officer held that the aforesaid "double plated rims" are taxable as unclassified items and not as agricultural implements as claimed by the assessee. Aggrieved against the same, the assessee preferred appeals and the Assistant Commissioner (Judicial) allowed the appeals of the assessee for both the years in respect of the liabilities relating to the U. P. sales tax as well as Central sales tax. The Assistant Commissioner (Judicial) held that the double plated rims are liable to be taxed as agricultural implements and not as unclassified item as held by the Sales Tax Officer. Therefore, the Commissioner of Sales Tax preferred appeals before the Sales Tax Tribunal, which have been disposed of by the aforesaid consolidated impugned order dated 24th September, 1986. In the Said order the Sales Tax Tribunal after referring to the case of Anil Industries v. Commissioner of Sales Tax 1986 UPTC 552, decided by this Court on 29th March, 1985 has held by implication that "double plated rims" are unclassified items. The Sales Tax Tribunal has under the impugned order inferred that since the said item was held by the High Court in the case of Anil Industries 1986 UPTC 552 to be exempt under the notification dated 14th November, 1980, hence for a period prior to that date it is not exempt and liable to be taxed as unclassified item. The Tribunal, therefore, allowed the appeals filed by the Commissioner of Sales Tax and restored the order of the assessing authority. Thus it is against this order of the Sales Tax Tribunal that the present revisions have been filed by the assessee in this Court.

(3.) I have heard learned counsel for the parties. The contention raised by the assessee is that the "double plated rims" are liable to be taxed as agricultural implements under the notification issued under Section 3-A of the U. P. Sales Tax Act. This submission made on behalf of the assessee has been stoutly refuted by the learned Standing Counsel appearing for the Commissioner of Sales Tax. He contends that the aforesaid item is liable to be taxed as unclassified item as held by the Sales Tax Officer.