1960 (3) TMI 32 - HC - VAT and Sales Tax

Summary

Issues:
1. Appealability of an order passed under section 5 of the U.P. Sales Tax Act under section 9.
2. Criteria for claiming rebate under section 5 regarding delivery of goods outside the State of Uttar Pradesh.
3. Entitlement to rebate of tax on sales of sugar despatched outside the State of Uttar Pradesh.

Analysis:
The judgment from the High Court of Allahabad addressed three key issues referred by the Judge (Revisions) Sales Tax, U.P. The first issue revolved around the appealability of an order passed under section 5 of the U.P. Sales Tax Act under section 9. The Court clarified that an order refusing to grant a rebate under section 5 cannot be considered an assessment order appealable under section 9. Instead, such orders could be challenged during the final assessment stage. Therefore, the Court answered the first question in the negative, affirming the decision of the Judge (Revisions).

Regarding the second issue, which pertained to the criteria for claiming a rebate under section 5 based on the delivery of goods outside Uttar Pradesh, the Court found that the facts assumed in the question were not established at any stage by the Judge (Revisions). Consequently, the Court refused to answer this question, deeming it irrelevant to the case at hand.

The third issue involved the entitlement to a rebate of tax on sales of sugar despatched outside Uttar Pradesh. The Court noted that the Judge (Revisions) incorrectly held that no rebate should be allowed if the buyer resided in Uttar Pradesh, contrary to the provisions of section 5 of the U.P. Sales Tax Act. The Court emphasized that the crucial factor for rebate eligibility was the actual delivery of goods outside Uttar Pradesh, regardless of the buyer's location. The Court meticulously analyzed the circumstances and found that the goods were indeed delivered outside Uttar Pradesh, at Gaya in Bihar. The Court concluded that the assessee was entitled to the rebate under section 5, as the sales were intended for delivery at Gaya, and the goods were actually delivered there. Consequently, the Court answered the third question in the affirmative, granting relief to the assessee.

In light of the favorable decision for the assessee, the Court directed that the assessee be awarded costs for the reference, setting it at Rs. 200. The reference was answered accordingly, providing clarity on the issues raised before the Court.