Separate commodity entries control tax treatment; unsupported explanation fails, while lease rent on immovable plant and machinery escapes section 3F tax.

Documentary entries showing rice husk and paddy husk as separate commodities were treated as admissions, and an unsupported explanation that the terms were used interchangeably could not displace those records. The turnover therefore had to be bifurcated, and purchase tax was payable on the rice husk turnover. Tax under section 3F of the U.P. Trade Tax Act applied only to movable property; plant and machinery treated as permanently attached to earth were not movable goods and no tax was payable on the lease rent. The revisional relief was limited accordingly, with tax restored only on the rice husk turnover and the deletion of tax on lease rent maintained.

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Issues: (i) Whether rice husk and paddy husk were distinct commodities and whether the entire purchase turnover could be treated as exempt paddy husk; (ii) Whether lease rent received for plant and machinery was liable to tax under section 3F of the U.P. Trade Tax Act, 1948.

Issue (i): Rice husk and paddy husk were found to be separately recorded in the dealer's books and survey material. The Tribunal's acceptance of an explanation that the two expressions were used interchangeably was held to be unsupported by cogent material. The books of account and registers were treated as admissions showing purchase of two different commodities, and the finding that the entire turnover represented paddy husk was held to be perverse.

Conclusion: The turnover had to be bifurcated, and purchase tax was payable on the rice husk turnover of Rs. 29,50,000.

Issue (ii): Tax under section 3F can be levied only on turnover of movable property. The plant and machinery in question were treated as permanently attached to earth, and the authorities below had not found them to be movable goods or saleable as such. The reliance on the Supreme Court decision concerning a different factual situation was held to be inapplicable.

Conclusion: No tax was payable under section 3F on the lease rent for plant and machinery.

Final Conclusion: The revision was allowed only to the extent of restoring tax on the rice husk turnover, while the deletion of tax on the lease rent under section 3F was maintained.

Ratio Decidendi: Where documentary entries establish purchase of two different commodities, a contrary explanation unsupported by material cannot displace those admissions; and tax on transfer of the right to use goods applies only to movable property, not to machinery treated as permanently attached to earth.

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