2003 (4) TMI 527

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..... We have heard the learned counsel for the parties and perused the writ petition, counter-affidavit, supplementary affidavit and the rejoinder affidavits. 3.. The petitioner is a Private Limited Company incorporated under the Indian Companies Act and is carrying on the business of manufacture of wire for which the raw material is iron and steel namely wires rods, etc. The petitioner is registered both under the U.P. Trade Tax Act and the Central Sales Tax Act and has been granted recognition certificate under section 4-B of the U.P. Trade Tax Act, 1948 in respect of wire rods, angles, iron, etc., as raw material for the manufacture of wires, vide annexure-1. The petitioner had purchased wire rods from respondents, which he used for manu....

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....ia Ltd., Hathras Road, Agra, to the respondents for the sale of material within U.P. on which tax at the rate of 4 per cent was charged and realised. The name of the respondent appears in column No. 2 in each of the invoices as the purchaser. 5.. Section 14(iv) of the Central Sales Tax Act, 1956 declares Iron and Steel as declared goods, which are of special importance in inter-State trade and commerce. Section 15 of the Central Sales Tax Act, provides specifically the restrictions and conditions with regard to tax on the sale or purchase of declared goods within the State. Section 15(a) of the Central Sales Tax Act, 1956 provides that the tax on sale or purchase of such goods inside the State shall not exceed four per cent of the sale o....

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....s payable by him on the turnover from the person to whom the goods are sold. However, when no tax is payable on such turnover by the selling dealer then he cannot recover the said amount from the purchaser. Thus it is evident that in view of the specific prohibition of section 8-A(2) the respondent has illegally collected tax at two per cent against form III-B in all the bills it raised on the petitioner in respect of the iron and steel sold by it to the petitioner. On July 1, 1994 the petitioner made an application (vide annexure 4 to the petition) to the respondent No. 1 to refund the amount of tax charged by the respondents in the bills at the rate of two per cent for which form III-B was also taken from the petitioner. The petitioner se....

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....g & Textiles Ltd. v. Assistant Commissioner (Assessment), Sales Tax 1987 UPTC 632 and Kalindi Bright Steels & Tubes Ltd. v. State of U.P. 1995 UPTC 201 the court directed refund of the amounts. The petitioner is hence entitled to refund along with 15 per cent interest from the date of payment of tax to the date of refund, which must be made within two months. 10.. Some memorandum of understanding (M.O.U) has also been entered into between Steel Authority of India Ltd., and the respondents under which extra incentive and rebate of 1.25 per cent on the bill amount (on the yard price) is also being allowed by the Steel Authority of India to the respondents. That memorandum of understanding is with the respondents, and not with the petitione....