TaxTMI 
TaxTMI 
2016 (8) TMI 923
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.... Allahabad whereby the writ petitions preferred by the appellant have been dismissed. The said writ petitions were filed by the appellant challenging the order dated 17.11.2006 passed by the Deputy Commissioner, Trade Tax, Saharanpur under Rule 41(6) of the U.P. Trade Tax Rules by which purchase tax at the prescribed rate of 4% amounting to Rs. 2,33,00,663/- had been imposed upon the appellant along with interest @ 14% on the admitted purchase of wheat. To state at the outset, the appellant herein wanted to avail the benefit of exemption Notification dated 29.08.2003 issued under Section 4B(1)(a-1) of the Uttar Pradesh Trade Tax Act, 1948 (hereinafter referred to as 'the Act') which plea of the appellant was rejected by the Deput....
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....nsidering reply thereupon and hearing the appellant, the demand of the show cause notices was confirmed. The orders passed by the Deputy Commissioner were challenged by filing two writ petitions which had been dismissed by the High Court by the impugned order. Before adverting to the manner in which the High Court has decided the matter, we would like to reproduce the relevant provisions of the Act as well as exemption Notification dated 29.08.2003. Section 3D of the Act, which is a charging section, prescribes the levy of trade tax on purchaser or sale of certain goods. These goods, admittedly, include wheat. Notwithstanding this provision contained in Section 3D of the Act, Section 4B(1)(a-1)contains a special provision providing sp....
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....rant the same relief as mentioned in clause (a) to such first purchaser;" It is a common case of the parties that the provisions of Section 4B(1)(a-1) are attracted in the present case, benefit whereof has been sought by the appellant. It mentions - where any declared goods liable to tax under sub-section (1) of Section 3-D are "sold or supplied" by a dealer, who is the first purchaser thereof, to another dealer and the said dealer holds a valid recognition certificate under sub-section(2) thereof, the State Government may, by a notification, grant the same relief as mentioned in clause(a) to such first purchaser. The conditions that are required to be satisfied for claiming the benefit under these provisions are: (1) the declared goods ....
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.... 2. The Roller Flour Mill and Atta Chakki Plant has been granted benefit of composition of tax liability under Section 7D during the relevant period; 3. The first purchaser of wheat within the State furnishes a declaration in Form 3B as provided under the Act, obtained from the purchasing Roller Flour Mill and Atta Chakki Plant alongwith following endorsement on the back from such Roller Flour Mill and Atta Chakki Plant." It is not in dispute that the appellant herein had supplied the goods to three flour mills which are other dealers. It is also not in dispute that the appellant/assessee is the first purchaser of the wheat which was supplied to the said three dealers. Two dealers were having valid recognition certifica....
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....e provisions of Section 4B(1)(a-1) of the Act. The Notification dated 29.08.2003 was, thus, rightly issued by the State Government giving the benefit to those goods which are supplied as well. It was not proper on the part of the High Court to tinker with the language of the Notification and exclude the benefit which is given to the dealer who supplies the goods to another dealer and confined the same only to the sale of goods. We may also note that the High Court presumed that if the words "or supplied" are not removed there would be a danger of misuse of the Notification. While making these observations,the High Court has given a hypothetical illustration by stating that in order to avail the benefit of the Notification and evade payment ....
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....e out-rightly rejected inasmuch as Section 4B of the Act, which starts with a non-obstante clause, clearly mentions that special relief which is provided under Section 4B would be available notwithstanding anything contained in certain provisions therein and Section 3D is specifically included. It would mean that the provisions of Section 3D have no relevance at all while considering whether a particular assessee is entitled to special relief under Section 4B of the Act or not. It was next contended that Section 4B of the Act gives the benefit only to "certain manufacturers" as is clear from the marginal note of the said section. We are afraid, even this argument is without any substance. No doubt, marginal note states that the special reli....