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2017 (2) TMI 958 - ALLAHABAD HIGH COURTValidity of assessment order - demand of differential tax u/s 3G(3) of the U.P. Trade Tax Act - construction contract - transfer of material purchased by the assessee at concessional rate to contractor - whether such arrangement, permitting utilization of construction materials by contractor and adjustment of its consideration in the contractor's account, would constitute an act of 'sale', so as to bring it within the clutches of sub-section (2) of section 3G or not? Held that: - the condition required to be fulfilled, so as to legitimately invoke provisions of sub-section (2) of section 3G of the Act, is that goods have passed on for consideration - in the present case also the goods have been transferred to the contractor and the amount payable for such goods have been adjusted from the account of the contractor. The contract of sale therefore is complete. The provisions of sub-section (2) of Section 3G of the Act therefore gets attracted. The order passed by the assessing authority under sub-section (3) of section 3G of the Act thus cannot be questioned. The demand of differential of tax imposed by the department, and affirmed by the tribunal, is in accordance with law, and the challenge laid to it fails - revision dismissed - decided against revisionist.
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