VYSYA BANK LTD. Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) THE present 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 March 17, 2004 for the assessment year 2000 -01. Revision No. 843 of 2006 relates to the assessment and Revision No. 842 of 2006 relates to the penalty under Section 15A(1)(a) of the Act.

(2.) THE brief facts of the case are that the applicant had entered into a contract with M/s. Dhampur Sugar Mills, Dhampur for providing plant and machinery on rent and during the year under consideration received total rent of Rs. 1,16,77,320. The claim of the applicant was that stamp paper for the agreement was purchased from Delhi and on September 29, 1995 the agreement was executed at Delhi and, therefore, the right to use has been transferred at Delhi and the trade tax authorities of State had no jurisdiction to levy the tax on the rent received in pursuance of the aforesaid agreement under Section 3F of the Act. In support of his contention reliance has been placed on the Supreme Court decision in the case of 20th Century Finance Corporation Ltd. v. State of Maharashtra reported in, [2000] 119 STC 182 :, [2000] UPTC 593. The assessing authority had not accepted the plea of the applicant and has levied the tax on the entire amount of rent received during the year under consideration under Section 3F of the Act. The order of the assessing authority has been upheld in first appeal and by the Tribunal.

(3.) HEARD Sri Ashok Kumar, learned Counsel appearing on behalf of applicant and learned standing counsel.