U P POWER TRANSMISSION CORPORATION LTD ; CG POWER AND INDUSTRIAL SOLUTIONS LTD THRU P/A HOLDER Vs. COMMISSIONER OF COMMERCIAL TAX; U P POWER TRANSMISSION CORPORATION LTD & 5 OTHERS

JUDGEMENT

(1.) U.P. Power Transmission Corporation Limited (hereinafter referred to as "UPPTCL"), 765 KV Transmission Division, Dahi Chowki, Unnao, has filed instant Commercial Tax Revision No.269 of 2017, assailing the order passed by the Commercial Tax Tribunal, Bench- 4, Kanpur, in second appeal no.154 of 2015. Proceedings pertained to assessment year 2010-11. The Tribunal vide its order under challenge has rejected UPPTCL's second appeal and thereby affirmed the denial of Form 'C', vide order dated 30.1.2013, as affirmed in appeal on 2.7.2015. Plea of the revisionist, a registered dealer, that by virtue of certificate of registration granted to it in Form 'B' it is entitled to purchase of goods on concessional rate of tax has been turned down. Orders challenged in the Commercial Tax Revision are also the subject matter of challenge in Writ Tax No.762 of 2017, filed by M/s CG Power and Industrial Solutions Ltd. (hereinafter referred to as the 'Writ Petitioner'). Writ Petitioner was awarded contract by UPPTCL for construction of 765 KV sub-station, on turn key basis, as part of its Power Transmission Infrastructure. A declaration is sought in the writ petition that UPPTCL is entitled to be issued Form 'C' for the financial year 2010-11 to 2016-17, for the purchases to be effected for the contract work specified in Form 'B' at Unnao and Sirathu. An alternative prayer is also made to direct the UPPTCL to pay differential amount of tax, together with interest, in case it is found not entitled to Form 'C'.

(2.) The Writ Petition (Tax) No.762 of 2017 has been connected with Commercial Tax Revision No.269 of 2017, vide order passed in revision on 15.11.2017. Both the matters are therefore listed together and are being disposed of by this common judgment.

(3.) Upptcl is an undertaking of the State of U.P. and is engaged in transmission of Power from the place of its generation to the distribution unit. The task of transmission is carried out by the UPPTCL across the State of U.P. by laying high voltage transmission lines, which are then stepped down by the local transformers (sub-stations) to supply power to the end consumer through distribution agency. For such purposes it engages contractors and sub-contractors. UPPTCL is a dealer registered under Section 2(b) of the Central Sales Tax Act, 1956 (hereinafter referred to as "Act of 1956"). It moved an application under Form 'A' of the Central Sales Tax (Registration and Turnover) Rules, 1957 (hereinafter referred to as "Rules of 1957") specifying its business as also the goods or classes of goods that are to be purchased by it in the course of interstate trade or commerce, for its Power Transmission. A certificate of registration in Form 'B' has been issued to UPPTCL. The registration certificate specifies goods that are to be purchased for use in manufacture or processing of goods for sale and for use in generation or distribution of electricity or any other form of power on concessional tax under section 8(4) of the Act of 1956. The certificate of registration issued in Form 'B' is extracted for the facility of reference:- <FRM>JUDGEMENT_89_LAWS(ALL)1_2018_1.html</FRM>