FOOD CORPORATION OF INDIA LUCKNOW ASST GENERAL MANAGER Vs. COMMISSIONER OF COMMERCIAL TAX,U P , LUCKNOW

JUDGEMENT

(1.) Heard Mr. Pradeep Agarwal, learned counsel for the applicant/revisionist as well as Mr. Sanjay Sareen, learned Additional Chief Standing Counsel for the respondents.

(2.) By means of the impugned order dated 26.08.2010 passed by the Commercial Tax Tribunal, Bench-1, Lucknow in Appeal No. 37 of 2010 for the assessment year 2004-05 under Section 15 A(1)(a) thereby upholding the penalty imposed upon the applicant by the order dated 30.010.2009 passed by the Joint Commissioner(A)-5, Commercial Tax, Lucknow.

(3.) The applicant is a registered dealer under the U.P. Value Added Tax Act, 2008 and under the Central Sales Tax Act, 1956. The applicant with a view to render the services to producers and consumers alike by procuring food grains at the notified prices, providing buffer stocks of food grains and essential commodities and acts as an agency of the Union of India. It works under the instructions of the Government of India issued from time to time on "No Profit and no loss basis". It has further been submitted that the procurement and distribution of food grains is regulated by various control orders as well as orders and directions of the Union of India and State of U.P. The food grains are also collected under the various orders passed under the Essential Commodities Act and under the levy procurement scheme of the "Price Support Scheme" The F.C.I. is thus entrusted interalia with the duty of collection of food grains for and on behalf of the State of U.P. and for storing the same for the Central Pool.