Court No. - 33 Case :- SALES/TRADE TAX REVISION No. - 1714 of 2006 Petitioner :- The Commissioner Trade Tax U.P., Lucknow Respondent :- S/S Siddheshwari Industries Pvt. Ltd., Petitioner Counsel :- Standing Counsel Hon'ble Bharati Sapru,J.
Heard learned counsel for the State and the learned counsel for the
respondent.
This revision has been filed under Section 11-A of the U.P.Trade Tax Act by
the State agaisnt the order of the Tribunal dated 29.5.2006 for the Assessment
Year 2000-01. The questions of law referred to are hereunder:
“(i) Whether, the purchase of Baggas of Rs.10,34,694.75 from units not
paying purchase tax on sugar cane under the Sugar Cane (Purchase Tax)
Act, 1961 is liable to tax under Section 3AAAA of the U.P.Trade Tax Act,
1948 ?
(ii) Whether under the facts and circumstances of the case the order of the
Tribunal is contrary to and based on misreading of the judgment of this
Hon’ble Court in the case of S/s Dhampur Sugar Mills Ltd. vs. C.S.T. (1996
UPTC 184-para 23 and 24), in which this Hon’ble Couret has held that “If
tax on purchase of sugarcane has already been paid under the U.P.Sugar
Cane (Purchase Tax) Act, 1961 the residue of sugarcane, if sold, can not be
subjected to sale tax ?”
The Tribunal has relied on a decision of this Court in the case of Dhampur
Sugar Mills Ltd. vs. Commissioner of Sales Tax, reported in 1996 UPTC
184, wherein the Court has held that if tax on the puchase of sugar has already
been paid under the U.P.Sugar Cane Purchase Tax Act, 1961 the residue of
sugar cane, if sold, cannot be subjective to sales tax. In the present case the
assessee has purchased Baggas, which is well known to be the residue of
sugarcane.
In view of the above decision, the questions of law are answered in favour of
the assessee and against the department.
This revision has no merit and is dismissed.
Order Date :- 4.1.2010
AKJ