TMI Blog2011 (1) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... . Kamani has not been sold at any stage in the State of U. P. and no tax was levied and paid on the turnover of kamani under the U. P. Trade Tax Act. In the result, the order of the Tribunal is liable to be set aside and the order of the assessing authority is liable to be restored so far as it levies the tax on the inter-State sale of kamani at the rate of four per cent. Accordingly, the revision is allowed - 1101,1104 of 2003 - - - Dated:- 10-1-2011 - RAJES KUMAR J. , J. RAJES KUMAR J. These are two revisions against the order of the Tribunal dated May 26, 2003 for the assessment years 1996-97 and 1997-98 both under the Central Sales Tax Act, 1956 (called, the Central Act , for short). The dispute in both the revisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground that in the earlier year two per cent tax has been levied. Heard Sri B. K. Pandey, standing counsel, and Sri R. R. Agrawal, counsel for the assessee. The learned standing counsel submitted that kamani was liable to tax at the rate of two per cent under Notification No. 1626 dated May 21, 1994 issued in exercise of power under section 3A of the U. P. Trade Tax Act, 1948 (called the Act , for brevity) on the condition that it was manufactured out of the tax-paid raw material. Therefore, the rate of tax at the rate of two per cent on such kamani was conditional and it was not generally liable to tax at the rate of two per cent and, therefore, in view of the Explanation to section 8(2A) the provision of section 8(2A) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904), the Governor is pleased to make with effect from June 1, 1994, the following amendment in Government Notification No. ST-2-5782/X-10(1)/80-U.P. Act-XV/48-Order81, dated September 7, 1981, as amended from time to time: AMENDMENT. In the list to the aforesaid notification for the entry at serial No. 6, the following entry shall, columnwise be substituted,namely: S. No. Description of goods Point of tax Rate of tax 1 2 3 4 6. (a) Iron and steel as defined in section 14 of the Central Sales Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 1626 dated May 21, 1994 is the notification under section 3A of the Act. The tax on the iron steel is at the rate of two per cent on the condition that it is manufacture from the tax paid raw material. The tax at the rate of two per cent is conditional and not general tax on the said commodity and, therefore, in view of the Explanation of section 8(2A) the assessee is not entitled for the benefit of section 8(2A). The aforesaid view is supported by the decision of the apex court in the case of Commissioner of Sales Tax, Jammu and Kashmir v. Pine Chemicals Ltd. reported in [1995] 96 STC 355 (SC); [1995] UPTC 609. The submission of learned counsel for the assessee, that in view of section 15(b) of the Central Act the tax has r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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