Court No. - 33 Case :- SALES/TRADE TAX REVISION No. - 9 of 2003 Petitioner :- M/S. Manoj Traders Respondent :- The Commissioner Of Trade Tax,U.P. Petitioner Counsel :- Rakesh Ranjan Agrawal Respondent Counsel :- C.S.C. Hon'ble Bharati Sapru,J.
This revision under section 11 of the U.P. Trade Tax Act has
been filed by the assessee for the assessment year 1992-93
against the order dated 2.11.2002 passed by the tribunal.
The questions of law referred to are as under:
“(i) Whether on the facts and circumstances of the case, the Trade Tax
Tribunal was correct to restore the penalty imposed under section 10-A
by the assessing authority?
(ii) Whether the tribunal was correct to hold that the assessee wrongly
imported mehndi against Form C believing it to be covered by desi
medicine and kirana and it was not competent to issue Form C?
(iii) Whether the tribunal was correct to hold that for assessment year
1991-92 and prior to that it accepted the mehndi as saunderya
samagri without considering that by notification no. 2153 dated
26.11.1991 mehndi was made non taxable?
(iv) Whether the tribunal did not consider that where the assessee
under bonafide belief that mehndi is covered by registration certificate,
penalty can not be levied especially when no finding is recorded that
the assessee deliberately intentionally falsely represented under
section 10(b) of C.S.T. that mehndi is covered by desi medicine,
isabalgol?
The Tribunal has differed with the order passed by the first
appellate authority and has imposed penalty on the
assessee under section 10A of the C.S.T. Act by recording
that the registration certificate of the assessee did not
include mehndi in it. However mehndi is commonly
considered as a Kirana item and is mostly sold in the market
of the small time Kirana shop. Mehndi has been declared
tax-free item by the Government vide notification dated
26.10.1991.
In view of the above, the impugned order of the tribunal is
set aside. The imposed by the tribunal is deleted.
The revision is allowed as above. No costs.
Order Date :- 1.2.2010
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