COMMISSIONER SALES TAX Vs. BRIJ MOHAN AND COMPANY

JUDGEMENT

(1.) This revision petition under Section 11 of the U.P. Sales Tax Act, 1948 (now U.P. Trade Tax Act) has been preferred by the Commissioner of Sales Tax and is directed against an order dated 24th December, 1993 passed by the Sales Tax Tribunal, Moradabad whereby it allowed the dealer's second appeal No. 406 of 1990 for assessment year 1984-85.

(2.) I have heard Sri Surya Prakash, learned Standing Counsel for the revisionist and Sri Bharat Ji Agrawal, learned Senior Advocate for the respondent.

(3.) The respondent is a sugar merchant. During the year under consideration, it purchased khandsari sugar from manufacturers who were holding eligibility certificates under Section 4-A of the U.P. Sales Tax Act, 1948 as a consequence of which the sales of the sugar manufactured by such manufacturers was exempt from tax. The extent of such purchases was Rs. 4,14,251 and the dealer claimed exemption from tax on such purchases. The dealer-revisionist also sold sugar worth Rs. 1,50,500 as a commission agent of the manufacturers who were holding eligibility certificates under Section 4-A and in respect of such sales and claimed exemption because of the eligibility certificate. These claims were denied by the assessing officer as well as the first appellate authority and the dealer, therefore, filed the aforesaid appeal which was allowed by the Tribunal.