TMI Blog2005 (8) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... ax under section 3-AAAA on the purchase of "reta" and "bajri", etc., from unregistered dealer. This levy of purchase tax at the hands of the applicant has been confirmed by all the three authorities below. Aggrieved against the aforesaid order present revision has been filed. Heard learned counsel for the parties and perused the record. Sri Shubham Agarwal, learned counsel for the applicant mainly submitted three points in support of the revision. Challenging the levy of purchase tax on the purchase of "reta" and "bajri" from unregistered dealer under section 3-AAAA of the Act, it was submitted that sand and "bajri" having been used in the execution of works contract in the assessment year in question when no notification under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant before sale and, as such, the amount of freight shall form part of the turnover. Learned counsel for the applicant in support of his first submission has placed reliance upon a judgment of the Supreme Court in the case of Deputy Commissioner of Sales Tax (Law) v. N. Kannan Nair [1988] 70 STC 48; AIR 1988 SC 1133. This was the case under the Kerala General Sales Tax Act, 1963. It has been held therein that the material purchased and used by the assessee, a contractor for repairing the road is not exigible to purchase tax under section 5A(1)(a) of that Act as the user must be in the manufacture of another commodity and the expression "consumed otherwise" must be so construed. The said case has hardly any application to the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purchaser pays. It is for achieving this central purpose that section 3-AAAA has been enacted providing for several situations. 52.. It would be immediately evident that section 3-AAAA does not speak of and does not refer in any manner to the user of the goods purchased. It is immaterial whether the goods purchased are used in the manufacture of other goods or dealt with otherwise. Much less does it speak of the manner in which the goods manufactured out of such purchased goods, if any, are dealt with. The exemptions provided in sub-section (2) are equally unrelated to the above aspects. Sub-section (1) is clear and simple. The tax becomes payable by the purchasing dealer in the two situations contemplated by clauses (a) and (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istered dealer could not produce purchase vouchers to show that these purchases were in respect of tax-paid goods. The further finding is that the applicant has not been able to establish that it made purchases from such Thekedar who have paid royalty to the State Government for mining sand and "bajri". In this view of the factual situation I find no illegality in the order of the Tribunal confirming imposition of purchase tax on the purchase of sand and "bajri" from unregistered dealer under section 3-AAAA of the Act. The next point raised by the applicant is with regard to levy of interest under section 8(1) of the Act. The assessing authority while framing assessment orders treated the tax assessed on the applicant as admitted turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n nor had admitted any tax liability thereon. In such a situation learned counsel has rightly relied upon the judgment of this Court in the case of Vijay Dal Mills v. Commissioner of Sales Tax 2000 UPTC 983, wherein it has been held following the judgment of the Supreme Court in the case of Commissioner of Sales Tax v. Hindustan Aluminium Corporation [2002] 127 STC 258; 1999 UPTC 1, that no interest can be charged on the turnover which has not been admitted by the dealer. It was held by the Supreme Court that classification dispute is ordinarily resolved in assessment proceeding and if resolved against the assessee, the assessee has to make payment of differential amount of tax, as required by sub-section (1-A) of section 8 failing which pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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