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2022 (5) TMI 707 - HC - VAT and Sales TaxClassification of goods - rate of Trade Tax under the U. P. Trade Tax Act - Nitrogen component in the Chemical Fertilizer DAP (Di Ammonium Phosphate) - relevant date for enhancement of rates of DAP with effect from 29/01/1999 - Whether the revision in the rate of Nitrogen content in DAP would be applicable from the date of enhancement of the rate of DAP by the Government of India with effect from 29 January, 1999 or from 26 February, 2000 when the same was notified by the State Government? HELD THAT:- There is no dispute with regard to facts in issue inasmuch as vide notification dated 27th May, 1998 the value of Nitrogen component in DAP was fixed at ₹1381.30. Subsequently the value1381.30. Subsequently the value of DAP was enhanced by the Union of India on 29/1/1999. The notification of the Commissioner, Trade Tax dated 26/02/2000 referred to the said enhancement of rate of DAP and consequent enhancement of value of the Nitrogen component in the DAP vide circular issued by the Department of Agriculture which was given wide circulation. There is no dispute that prior to notification dated 26/02/2000 the notification dated 27th May, 1998 was in existence. The notification dated 6th May, 1998 itself provided the percentage of different components of the Chemical Fertilizer shall be determined according to the guidelines issued by the Department of Agriculture from time to time and the Department of Agriculture had informed the Commercial Tax Department vide letter dated 08/05/1998 that value of the Nitrogen component in DAP would be 1381.30 - The first appellate court as well as Commercial Tax Tribunal have both while disallowing the claim of the revisionist have held that at the moment the rate of DAP were enhanced by the Central Government vide its order dated 29.1.1999, the revisionist started collecting the enhanced rate. No material has been placed by the revisionist before this Court to upset the concurrent finding of facts recorded by both the authorities below that the revisionist had collected the enhanced rate of DAP from the date of notification issued by Government of India. It is also noticed that vide its order dated 26.2.2000 the Commissioner, Trade Tax had circulated the letter of Government of India dated 14.10.1999 which fact was already within the knowledge of the revisionist, who is a dealer of DAP and the contention of the revisionist in this regard has not been accepted by the first appellate court as well as Commercial Tax Tribunal - The revisionist having realized enhanced rate of DAP from 1999 when the rate was enhanced by the Government of India, he would be liable to pay Trade Tax at the enhanced rate of Nitrogen content in DAP. This finding recorded by the Tribunal has not been assailed by the revisionist. In case, the revisionist is allowed to pay Trade Tax the earlier rate of nitrogen component in DAP, it would amount to unjust enrichment and, therefore, even in this view of the matter the revision fails. This Court in consideration of the aforesaid facts is of the considered opinion that no interference is required with the judgment of the Commercial Tax Tribunal that enhanced rate of nitrogen would be effective from 1999 itself rather than 26.2.2000. The question is answered in favour of the revenue as against the revisionist. Consequently, the revision is dismissed.
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