2010 (10) TMI 964

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....st an order passed by the Trade Tax Tribunal dated January 27, 2004, for the assessment year 1999-2000 by which the Tribunal has imposed the penalty on the assessee for violation of the provisions of section 4B(5) of the U.P. Trade Tax Act, 1948 (hereinafter referred to as "the Act"). The facts of the case are that the assessee was granted a recognition certificate under section 4B of the Act f....

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....finding that the material which was purchased against form IIIB was used for the manufacture of cycle parts. The order of penalty was therefore, set aside. Being aggrieved by the order passed in the first appeal the Department went in second appeal and the Tribunal has allowed the second appeal of the Department and has upheld the order of penalty. I have heard learned counsel for the assessee ....

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.... and the amount of tax payable under any other provisions of this Act but not exceeding three times the amount of such difference." Upon an examination of the section it becomes clear that the requirement of section is that a person who is granted a recognition certificate under section 4B should utilise the material of goods purchased by him under the said certificate for that purpose alone fo....

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.... [2004] 138 STC 470; [2003] UPTC 572, in which this court has held that no penalty can be imposed under the provisions of section 4B(5) of the Act for the use of material purchased against form IIIB for the manufacture of goods, if done on a job-work basis that is to say that this court had accepted that if the purpose remains the same intended in the recognition certificate then even manufacture ....