Court upholds Tribunal decision on taxation of seed procurement & inter-State transfer. Revisions dismissed for lacking merit.

The Court dismissed the revisions, affirming the Tribunal's decision on the taxation of seed procurement within U.P. and the inter-State transfer to Kota. The Court found no reason to interfere as lower authorities had concurrent factual findings, concluding that the revisions lacked merit.

---

---

Issues involved:
Assessment of tax on the transaction of procuring seeds from farmers and sending them to another state.

Detailed Analysis:

1. Background and Common Judgment:
The revisions relate to assessment years 2004-05, 2005-06, and 2006-07 arising from a common order by the Commercial Tax Tribunal. The revisionists challenged the Tribunal's decision rejecting their appeal against the first appellate order.

2. Arguments by Revisionists:
The revisionists, public limited companies, argued that their transactions involving procuring seeds from farmers for their Kota plant were inter-State and not taxable in Uttar Pradesh. They contended that the seeds were grown under their engineers' supervision and sent to Kota for testing and grading.

3. Revenue's Position:
The Revenue argued that the transactions involved two sets: procurement from farmers and transmission to Kota. The assessing authority taxed the procurement within U.P., which the first appellate authority and Tribunal upheld as just under the U.P. Trade Tax Act.

4. Tribunal's Decision:
The Tribunal found the procurement taxable in U.P., while the transmission to Kota was an inter-State transfer not subject to U.P. taxation. The Tribunal's decision was supported by the Revenue, stating that all relevant aspects were considered, and no infirmity existed.

5. Court's Analysis and Conclusion:
The Court reviewed the agreements between the revisionists and contractors for seed procurement. It noted that the procurement from farmers was taxable in U.P. as per the agreements, with payments linked to seed quality certification in Kota. The Court upheld the Tribunal's decision, finding no reason to interfere as the lower authorities had concurrent factual findings.

6. Final Judgment:
The Court dismissed the revisions, stating they lacked merit. It affirmed the Tribunal's decision on the taxation of seed procurement within U.P. and the inter-State transfer to Kota. The questions of law were answered accordingly, and no grounds were found to overturn the Tribunal's order.

---