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2016 (8) TMI 923 - SC - VAT and Sales TaxValidity of the judgement dated 16.01.2007 - Trade Tax, Saharanpur under Rule 41(6) of the U.P. Trade Tax Rules imposition of purchase tax along with interest - benefit of exemption Notification dated 29.08.2003 issued under Section 4B(1)(a-1) of the Uttar Pradesh Trade Tax Act, 1948 - Section 3D(1) of the Act purchase of wheat supply to flour mills for grinding process Held that: - in order to avail the benefit of the Notification and evade payment of purchase tax, a particular supplier may set up a middle man or an agent who will be the first purchaser and who will claim exemption under the said Notification and will supply wheat to flour mill beyond its assessed grinding capacity and the excess quantity of wheat which the flour mill will receive is only by way of supply and not by way of purchase. If a dealer sets up any middle man or an agent who purchases the goods,then such middle man or agent becomes the first purchaser and in that event he would not be in a position to get the benefit of the special relief provided under Section 4B of the Act. Therefore, Notification dated 29.08.2003 should have been read as it is and on that basis the High Court was supposed to examine as to whether the appellant satisfied the conditions of Section 4B of the Act read with the aforesaid Notification dated 29.08.2003 or not. The benefit is extended to a dealer and for availing this benefit it is not necessary that he has to be a manufacturer. Here, the appellant satisfies all the conditions and is also the first purchaser - appellant entitled to the benefit of Section 4B(1)(a-1) as well as Notification dated 29.08.2003 appeal disposed off - decided in favor of appellant.
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