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2018 (3) TMI 544 - HC - VAT and Sales TaxLiability of purchase tax - cocoon - Whether the Tribunal has erred in holding the revisionist liable to tax under Section 3-AAAA on the purchase of cocoon from Resham Directorate of the Government of U.P. in view of notification dated 14.11.1995 by which silk-yarn has been exempted from tax u/s 4 of the Trade-tax Act, 1948? Held that: - It is an admitted factual position that the revisionist is not a producer of cocoon, therefore, not covered by the proviso to Section 2(c) of the Act, 1948. In exercise of the powers under clause (a) of Section 4 of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No.15 of 1948), the Governor is pleased to direct that with effect from February 26, 2000 no tax under the said Act shall be payable on the sale of pure silk, silk fabric, silk mixed cloth and silk yarn. The words used in clause (iii) of the proviso to Section 3-AAAA are ''in the same form and condition in which he had purchased them' thus only in such an eventuality, that is, if the Revisionist sold the cocoon purchased by it, as cocoon, it would escape the rigour of the charging provision, but this is not the case here. The memo of Second Appeal filed by the revisionist before the Tribunal is not on record so as to enable the Court to ascertain as to whether this plea was raised before it or not. Nevertheless, it being an important aspect which is required to be considered, therefore, it needs to be considered by the Tribunal. The Tribunal shall proceed to decide the Appeals, which stand restored - the impugned order is set aside.
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