Trade tax exemption for liquor sales to the Canteen Stores Department upheld on full compliance with notification conditions.

Sales of Indian-made foreign liquor to the Canteen Stores Department qualified for exemption from trade tax under the notification issued under section 4 of the U.P. Sales Tax Act, 1948, because the documentary record showed the Canteen Stores Department as the contracting purchaser and included the required purchase order, invoice, permit, challan, goods receipt, transport and import permits. The notification's conditions were satisfied by the necessary certificate from an officer not below the rank of Commanding Officer and by the showing that the goods were meant for sale to members of the Armed Forces. On those facts, denial of the exemption was not justified.

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Issues: Whether sales of Indian-made foreign liquor made to the Canteen Stores Department were exempt from trade tax under the notification issued under section 4 of the U.P. Sales Tax Act, 1948.

Analysis: The sales were supported by the purchase order, invoice, permit, challan, goods receipt, transport and import permits, all showing the Canteen Stores Department as the contracting purchaser. The exemption notification required that the sale be to the Canteen Stores Department or Military Canteens, be certified by an officer not below the rank of Commanding Officer, and relate to goods meant for sale to members of the Armed Forces. The record contained the necessary certificate and established compliance with all the conditions of the notification. The assessment authority and appellate authorities were therefore not justified in denying the exemption on the facts found.

Conclusion: The sales to the Canteen Stores Department were exempt from trade tax.

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