TMI Blog2013 (6) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... the revisions in the question. Thus, the revisions filed by the department are allowed. - Decided in favor of assessee. - Trade Tax Revision No. - 206 of 2008 - - - Dated:- 8-1-2013 - Dr. Satish Chandra,JJ. For the Petitioner : I. B. Singh, Neerav Chitravanshi, R. S. Chitravanshi For the Respondent : C. S. C. ORDER Hon'ble Dr. Satish Chandra, J. All the present revisions are the cross revisions filed by the assessee (Deputy Narcotics Commissioner) as well as by the department against the different judgments/orders passed by the Trade Tax Tribunal, Lucknow, for the assessment years mentioned above. The brief facts of the revisions are that the assessee is a department of the Central Government who is engaged in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ON MERITS I. Sri R.S.Chitravansi, learned counsel for the Narcotic Department submitted that the assessee is a Department of the Central Government, who is exclusively owner of the crop of the opium as per the contract with the cultivators. The Narcotic Department granted a license to each and every cultivator to grow the opium on behalf of the assessee. Thus, the department is the owner of the crop. So, there is no question of "sale of opium" by the cultivator to the department. However, he admitted that the sale of the opium is taxable item as per the judgment passed by the Hon'ble Supreme Court in the case of Civil Appeal No.4354 of 2000 dated 28th Sept. 2005, Union of India vs. Sales Tax Officer, Ghazipur. He also relied on the ratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that, although the ingredients of a "sale", as defined in Benjamin's Treatise on "Sale", may seem to be satisfied even if delivery of goods is in obedience to an order to an order to deliver them for a consideration, fixed or to be fixed if we stretch mutual assent to cover assent resulting from orders given, yet, it is difficult to see how much a transaction would be based on a contractual tie. According to Section 4(3) of our Sale of Goods Act, a sale results only from a contract which presupposes a minimal area of freedom of choice where the ordinary mechanism of proposal and acceptance operates." Learned counsel also relied on the ratio laid down in the case of Coffee Board Karnataka, Banglore Vs. Commissioner of Commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Coffee Board; it is a statutory obligation imposed on the Coffee Board and does not make it a trustee in any event. It is also not possible to accept the submission that the Central Sales Tax Act will not be applicable to any sale by the Coffee Board because it was an export sale by the Coffee Board. In Consolidated Coffee Ltd. Another v. Bangalore etc., (supra) it has been held that there must be a prior agreement at the time when the transaction of sale takes place. No such prior agreement existed in this case. 49. In New India Sugar Mills Ltd. v. Commissioner of Sales tax Bihar (supra), Hidayatullah, J. as the Chief Justice then was, observed that so long as the parties trade under controls at fixed price and accept these as any oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions filed by the Narcotic Department (T.T.R.Nos. 85, 86, 87, 88 of 2006 and T.T.R.Nos. 10, 11, 12, 13 of 2000) have no merits and the same are hereby dismissed. II. Trade Tax Revision Nos.185, 202, 203, 204, 205 and 206 of 2008 are concerned with the interest imposed under Section 8(1) of the U.P. Trade Tax Act, 1948. After hearing both the parties, it appears that Section 8 sub-clause (1) of the U.P. Trade Tax Act, 1948 deals regarding the interest. On reproduction, the said provision reads as under:- "Payment and recovery of tax- S.8 (1) The tax admittedly payable shall be deposited within the time prescribed or by 31st day of August, 1975, whichever is later, failing which simple interest at the rate of [fourteen percent per men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayable. In such a case, the dealer cannot claim that he is liable only from the date of the assessment order fixing the correct rate of tax. 18. Similarly, in a case where the dealer has taken a chance and it has been held that the tax is payable under the Act, the same becomes payable from the date when it was due." In the light of above well settled legal position, the charging of the interest is mandatory. When it is so, then there is no merit in the revisions filed by the Narcotic Department for the wavier of the interest. So, by upholding the impugned orders passed by the Tribunal, all the revisions in question are hereby dismissed. III. Trade Tax Revision Nos.98, 99, 100, 101, 102, 103, 104, 105 and 106 of 1996 have been filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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