AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (11) TMI 1069
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.... Kanpur Bench - 1st, Kanpur in Second Appeal No. 34 of 2003 (for the assessment year 1999-00) and Second Appeal No. 597 of 2003 (for the assessment year 2000 - 01); by which, the claim of the revisionists under section 4-BB of the U.P. Trade Tax Act has been rejected. In both the revisions, common questions of law have been framed, which are as under:- "1. Whether on the facts and circumstances of the case, the Tribunal is legally justified in law in confirming the orders of the authorities below and in not granting the benefit claimed by the revisionist under section 4-BB of the Act of setting off of tax on finished goods on the ground that it purchased the raw material from a dealer which is exempted under section 4-A of the A....
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....he tune of Rs. 3,99,461/-. The claim for the assessment year 2000-01 to the tune of Rs. 7,37,035/- was also rejected by the assessing authority. Aggrieved by the assessment order, the revisionist preferred first appeal before the Joint Commissioner (Appeal - 1st), Trade Tax, Kanpur. The first appellate authority rejected the first appeal, against which second appeal under section 10 of the Act was filed before the Tribunal, which was also dismissed upholding the rejection of claim made by the revisionist under section 4-BB of the Act. Aggrieved by the order of the Tribunal, the present revisions have been filed. Heard learned counsel for the parties. Learned counsel for the revisionist submits that the purchase has been made fro....
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....the tax payable on sale of such finished goods. There is no dispute that dealer M/S Mahaveer Rolling Mills (P) Limited from whom assessee has purchased raw material/ packing material is fully exempt from the payment of tax under Section 4-A of the Act and has been issued an eligibility certificate in that regard. The raw material/ packing material so sold to the assessee is within the permissible limits of the eligibility certificate. The material so sold has been used by the assessee in manufacture of the finished goods. Therefore, the assessee claimed set off of the value of tax assessable on the purchase of said raw material/ packing material from the above dealer from the tax payable by the assessee on the sale of the finished ....
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....otification, be deducted from the tax payable on the sale of such goods- (a) inside the State, to the extent the tax has been paid on the purchase or sale of raw material or packing material from which the goods sold inside the State were manufactured or packed; (b) in the course of inter State trade or commerce, to the extent the tax has been paid on the purchase or sale of raw material or packing material from which the goods sold in the course of inter State trade or commerce were manufactured or packed: Provided that the amount of tax to be deducted under clause (a) or clause ( b) shall not exceed the amount of tax payable separately under this Act or the Central Sales Tax Act, 1956" The submission of....
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....escribed. The payment of tax can be by tendering the amount physically by cash, cheque or draft or it can also be by some adjustment. There is no prohibition in the Act from making payment of tax by way of an adjustment. When the amount of tax determined and payable by the dealer is accounted for and is given due adjustment in the eligibility certificate, it amounts to payment of tax or receipt of tax by the revenue. Thus, non grant of the set off/ deduction to the assessee under Section 4-BB of the Act of the amount of tax payable by him on the purchase of raw material / packing material from the dealer Mahaveer Rolling Mills ( P) Ltd. which is fully exempt from payment of tax under Section 4 -A of the Act was not legally justified and as ....