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2014 (12) TMI 1422 - HC - VAT and Sales TaxLevy of Entry tax on craft paper applying notification dated 15.01.2009 - Section 4(1) of the U.P. Tax on Entry of Goods into Local Areas Act, 2007 - HELD THAT - The contention of learned counsel for the applicant is not acceptable for the reason that any goods of any description entering the local area is not subjected to entry tax, it is only the goods specified in the Schedule as notified by the State Government is leviable with entry tax. The goods as specified in the notification inter alia provides for paper for packing purpose. A finding of fact has been recorded by the Tribunal that the dealer is manufacturer of laminated sheets using craft paper as raw material and not for packaging purposes. The finding of fact stands concluded by the Tribunal. The Court is not inclined to interfere with the impugned order - Revision dismissed.
Issues:
1. Interpretation of entry tax on craft paper used in manufacturing laminated sheets. 2. Application of the notification dated 15.01.2009. 3. Rejection of the appeal by the assessing authority. 4. Consideration of craft paper as packaging material. 5. Assessment for the assessment year 2013-14. 6. Applicability of Section 4(1) of the U.P. Tax on Entry of Goods into Local Areas Act, 2007. Analysis: The judgment by the High Court of Allahabad dealt with the interpretation of entry tax on craft paper used in the manufacturing of laminated sheets. The opposite party, a dealer involved in the business of manufacturing and selling abrasive paper/laminated sheets, was subjected to entry tax by the assessing authority based on the classification of craft paper as packaging material as per a notification dated 15.01.2009. The dealer's appeal against this decision was rejected, leading to a second appeal before the Commercial Tax Tribunal. The Tribunal considered the notification and concluded that craft paper used as raw material for manufacturing laminated sheets did not fall under the category of paper meant for writing, printing, or packing purposes as per the notification. The Tribunal's finding was that the craft paper was not used for packaging but for manufacturing laminated sheets, thereby exempting the dealer from entry tax. The applicant, represented by learned counsel, relied on Section 4(1) of the U.P. Tax on Entry of Goods into Local Areas Act, 2007, arguing that any goods entering the local area for consumption or sale are liable to entry tax. However, the Court clarified that entry tax is applicable only to goods specified in the Schedule notified by the State Government, which includes paper for packing purposes. Since the Tribunal had already established that the dealer used craft paper as raw material for manufacturing laminated sheets and not for packaging, the Court upheld the Tribunal's decision and refused to interfere with the order. In conclusion, the High Court dismissed the revision at the admission stage, finding it devoid of merit. No costs were awarded in this matter. The judgment provides a clear interpretation of the application of entry tax laws concerning the use of craft paper in manufacturing processes and emphasizes the importance of specific categorizations outlined in official notifications for tax levies.
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