TaxTMI 
TaxTMI 
2010 (8) TMI 840
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....he provisions of the U.P. Trade Tax Act were applicable to the area of Uttarakhand. The sales to the manufacturers holding recognized certificate under section 4B of the Act were, either partially exempted or fully exempted under the notification issued in this regard. However, this benefit was not available on the sale to the manufacturers of Uttarakhand after its formation. It appears that to provide same benefits on the sales made by the dealer of the State of U.P. to the manufacturer of Uttarakhand, a Notification No. KA.NI-2-3915/XI-9(129)/2000-Act-74-56Order(49)-2000, dated November 23, 2000 had been issued in exercise of powers under section 8(5) of Central Sales Tax Act, 1956. The aforesaid notification provides that the sales in the course of inter-State, trade or commerce to the dealer holding recognition certificate issued under section 4B of the Act whose validity commences prior to November 9, 2000, for the use in the manufacture of goods or in the packing of goods manufactured by him, shall be calculated at such rate as would have been leviable on such sales against form IIIB prescribed under the said U.P. Act No. 15 of 1948, subject to the condition that the dealer s....
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....,39,927. Likewise, for the assessment year 2001-02 in the absence of form C the tax has been levied at 10 per cent and the time for filing the form C was allowed. The petitioner filed form C within the time allowed. The assessing authority passed the Misc. order on April 7, 2003 and levied the tax at 2.5 per cent on the turnover of Rs. 49,13,786 and granted exemption on the turnover of Rs. 1,09,25,489. For the assessment year 2002-03 in the original assessment proceeding, in the absence of form C the tax was levied at 10 per cent. Out of the aforesaid turnover, form C in respect of Rs. 99,55,684 was furnished. The assessing authority has granted the exemption on the aforesaid turnover. Later on the assessing authority had sent proposals to the Additional Commissioner for approval to initiate the proceeding under section 21 of the Act beyond the normal period of limitation on the ground that under the Notification No. KA.NI-2-3915/XI-9(129)/2000-Act-74-56-Order(49)2000, dated November 23, 2000 the tax on the sales to the manufacturer of Uttarakhand holding recognition certificate under section 4B of the Act and against form C was at 2.5 per cent while the total exemption had been a....
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....-15-48-Order-99, dated February 12, 1999 cannot be read along with Notification No. NI-2-3915/XI-9(129)/2000-Act-74-56Order(49)-2000, dated November 23, 2000. He, however very fairly submitted that for the period November 9, 2000 to November 23, 2000, the petitioner is not entitled for any exemption on the turnover of the aforesaid period and would be liable to tax at four per cent against form C and at 10 per cent without form C. He further submitted that it is true that Notification No. TIF2-289/XI-9(820)/92-U.P. Act-15-48-Order-99, dated February 12, 1999 has not been referred in the assessment order but by granting the exemption on the turnover it is implied that the exemption had been granted under the aforesaid notifications. Sri U.K. Pandey, learned standing counsel, submitted that Notification No. TIF-2-289/XI-9(820)/92-U.P. Act-15-48-Order-99, dated February 12, 1999 is applicable on certain conditions and unless those conditions are fulfilled, the exemption cannot be availed of. He submitted that in the relevant assessment years, the assessing authority had not at all considered the Notification No. TIF-2-289/XI-9(820)/92-U.P. Act-15-48-Order-99, dated February 12, 1999 ....
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....r the time being to assess the dealer. Explanation III: Notwithstanding the issuance of notice under this sub-section, where an order of assessment or reassessment is in existence from before the issuance of such notice, it shall continue to be effective as such, until varied by an order of assessment or reassessment made under this section in pursuance of such notice." Notification No. KA.NI-2-3915/XI-9(129)/2000-Act-74-56-Order (49)2000, dated 23rd November, 2000: "Notification No. KA.NI-2-3915/XI-9(129)/ 2000-Act-74-56-Order (49)-2000, dated November 23, 2000 published in the U.P. Gazette, Extra, Part 4, section (Kha), dated November 23, 2000. Whereas, the State Government is satisfied that it is necessary so to do in public interest. Now, therefore, in exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Act No. 74 of 1956), the Governor is pleased to direct that with effect from the date of publication of this notification in the Official Gazette the tax payable under sub-section (1) of the said section by any dealer having his place of business in the State of Uttar Pradesh in respect of the sales by him, in the course of ....
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....cants for use in the manufacture of or any packing material for packing of notified goods manufactured by him. 5 per cent 2 per cent 2.5 per cent 2. Goods manu-factured by distilleries and breweries Molasses 8 per cent 3. All other goods (a) Declared goods (b) All other raw material, processing material, consumable stores, machinery, plant, equipment, spare parts, accessories, components, fuel or lubricants for use in the manufacture of or any packing material for packing of notified goods manufactured by him. 2 per cent. 2.5 per cent. Provided that where any declared goods liable to tax under subsection (1) of section 3D of the said Act are sold or supplied by a dealer, who is the first purchaser thereof, to another dealer holding a valid recognition certificate issued under sub-section (2) of the said section 4B, the dealer makings such sale or supply shall, on furnishing to the assessing authority within the time prescribed a declaration in form IIIB obtained from the dealer to whom such goods were sold or supplied, liable to tax at the rate of two per cent on the turnover of first purchaser of such goods." Notification No. TIF-2-289/XI-9 (820)/92-U.P. A....