TaxTMI 
TaxTMI 
2022 (7) TMI 348
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....are involved, they are being disposed of by this common judgment. 4. Brief facts of the case are that the revisionist firm is registered dealer under the U.P. Trade Tax Act, 1948 (hereinafter referred to as "the Act, 1948") and is engaged in manufacture and sale of sugar. The revisionist had applied for grant of "recognition certificate" under Section 4-B of the Act, 1948 read with U.P. Trade Tax Rules, 1948 and was granted recognition certificate no. ST433, dated 28.07.1994. Further applications were made for adding certain goods and by means of order dated 16.12.1998, recognition certificate was amended and revisionist was entitled to purchase the goods on concessional rate of tax, which were to be utilized by him for manufacture of notified goods. 5. It is during course of assessment proceedings it came to the notice that revisionist had purchased 'paint' on concessional rate of tax at the rate 2.5% (normal rate of tax 15%) against Form-3B and hence he was put under notice asking him to reply as to why he has purchased Paint utilizing Form-3B, despite the fact that Paint is not a raw material used for manufacture of sugar and hence why should difference of tax of 1....
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.... and arbitrary and deserve to be interfered with by this Court in exercise of its revisional powers. 11. Learned counsel for the revisionist further submitted that similar controversy has also been determined by the Tribunal in the case of Commissioner of Commercial Tax Vs. Awadhesh Sugar Mills Ltd., Hargaon, by means of judgment passed in Appeal No. 307-2001, dated 01.01.2004, wherein the Tribunal held that Paints are included in the definition of "consumable store" and has set aside the penalty order while allowing the said appeal. 12. Sri Rohit Nandan Shukla, learned counsel appearing for the Revenue has supported the impugned judgment and order as well as the orders passed by the Assessing Authority as well as first Appellate Authority and has submitted that for manufacture of sugar 'paints' is not a raw material which is utilized for manufacture of sugar and hence revisionist has purchased the 'paints' utilizing Form-3B in clear violation of provisions of Section 4(b) of the Act and hence there is no infirmity in the orders passed by the authority below. He further submits that definition of "consumable store" was interpreted by the Hon'ble Supreme Co....
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....n.- For the purposes of this sub-section- (a) 'goods required for use in the manufacture' shall mean raw materials, processing materials, machinery, plant, equipment, consumable stores, spare parts, acessories, components, sub-assemblies, fuels or lubricants;" 15. It is further provided in Section 4-B(5) of the Act, 1948 that :- "(5) Where a dealer in whose favour a recognition certificate has been granted under sub-section (2) has purchased the goods after payment of tax at concessional rate under this section or, as the case may be, without payment of tax and has used such goods for a purpose other than that for which the recognition certificate was granted or has otherwise disposed of the said goods, such dealer shall be liable to pay as penalty such amount as the assessing authority may fix, which shall not be less than the difference between the amount of tax on the sale or purchase of such goods payable under this section and the amount of tax payable under any other provisions of this Act but not exceeding three times the amount of such difference." 16. The Apex Court in the case of Coastal Chemicals Ltd. Etc. (supra) has clearly stated that w....
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.... it is the specific case taken by the applicant that they fall under the description of the word "stores". The word "store" has not been defined under the Act or the Rules framed thereunder. In Webster's Third New International Dictionary of the English Language, Unabridged, 1971 Edition, the word "stores" has been defined as under: "articles (as of food) accumulated or some specific object and issued or drawn upon as needed : the raw or unworked material supplies of a manufacturing concern." 21. Thus, the dictionary meaning of the word "stores" is material supplies of a manufacturing concern or articles accumulated for some specific object and issued or drawn upon as needed. 22. ------- 23. Applying the aforementioned principles, I find that the cement which is required by the applicant for use in the construction of factory building and or foundation, as held by the honourable Supreme Court in the case of J.K. Cotton Spinning & Weaving Mills Co. Ltd. [1965] 16 STC 563 ; AIR 1965 SC 1310, which has been followed by the honourable Karnataka High Court in the case of Ballarpur Straw Board Mills Ltd. [1978] 42 STC 401 and this Court in the case....