TaxTMI 
TaxTMI 
2015 (6) TMI 738
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....s, inter alia, sold packing trays (corrugated boxes) to the tune of Rs. 9,98,561.21. The assessee had purchased these packing materials on the strength of declaration under Section 3-B of the U.P. Trade Tax Act, 1948 (hereinafter referred to as 'the Act'). It was found that the sale of packing material in the same form and condition violated Section 4-B(5) of the Act. Accordingly, penalty equal to twice at the rate of 10%, namely, Rs. 1,99,712/- was imposed by the Assessing Officer, vide Annexure -1. The appeal before the 1st Appellate Authority was unsuccessful, but the Tribunal in further appeal by Annexure-5 judgment dated 10.09.2009 allowed the appeal filed by the assessee on the following reasons:- "From perusal of the file we find th....
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....e Tax Act?" 3. We heard the learned counsel for the State/revisionist Shri H.M. Bhatia and Shri Mohit Maulekhi, learned counsel on behalf of the respondent. 4. Section 3-B of the Act reads as follows :- "3-B. Liability on issuing false certificates, etc.- Notwithstanding anything to the contrary contained elsewhere in this Act, and without prejudice to the provisions of Sections 14 and 15-A, a person who issue a false or wrong certificate or declaration, prescribed under any provision of this Act or the Rules framed thereunder, to another person by reason of which a tax leviable under this Act on the transaction of purchase or sale made with or by such other person ceases to be leviable or becomes leviable at a concessional rate shall be....
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.... of a recognition certificate in respect thereof; and if the applicant satisfies such requirement including requirement of depositing late fee and conditions as may be prescribed, the assessing authority shall grant to him in respect of such goods a recognition certificate in such form, and subject to such conditions, as may be prescribed. Explanation.- For the purposes of this sub-section,- (a) goods required for use in manufacture shall mean raw materials, processing materials, machinery, plant, equipment, consumable stores, spare parts, accessories, components, sub-assemblies, fuels or lubricants; and (b) 'notified goods' means such goods as may, from time to time, be notified by the State Government in that behalf." And finally we c....
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....d be liable to be proceeded under Section 4-B(5) of the Act. The authorities has invoked Section 4-B(5) and imposed penalty in the matter. The learned counsel for the revisionist would contend that the orders of the Assessing Authority and the 1st Appellate Authority were justified for the reason that it is a case where the respondent/assessee had purchased the packing material (corrugated boxes) on the strength of the recognition certificate and on declaration under Section 3-B and purportedly for using the same for packing the goods manufactured by it, but it has sold the packing material separately and in the condition in which it was purchased. It was neither used in the manufacturing of any goods, nor was used for packing. This fact so....