Allahabad High Court Upholds Concessional Tax Rate for Sales to State Sugar Corp

The High Court of Allahabad dismissed the revision petitions by the Commissioner, Trade Tax, U.P., Lucknow, challenging an order allowing a dealer to pay concessional tax rate for sales to U.P. State Sugar Corporation with form III-D declaration. The Court upheld the Tribunal's decision that the dealer cannot be subjected to normal tax rate if the form III-D was accepted in good faith, citing previous cases and the principle that liability shifts to the purchasing dealer only if collusion is proven. The Court found no illegality in the Tribunal's decision and dismissed the petitions.

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The High Court of Allahabad dismissed the revision petitions by the Commissioner, Trade Tax, U.P., Lucknow, challenging an order allowing a dealer to pay concessional tax rate for sales to U.P. State Sugar Corporation with form III-D declaration. The Tribunal held that the dealer cannot be subjected to normal tax rate if the form III-D was accepted in good faith. Previous cases supported this interpretation, stating that liability shifts to the purchasing dealer if a false declaration is made unless collusion is proven. The Court found no illegality in the Tribunal's decision and dismissed the petitions.

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