TMI Blog2011 (1) TMI 1255X X X X Extracts X X X X X X X X Extracts X X X X ..... ht of the observations made above. - 702 of 2007 - - - Dated:- 24-1-2011 - RAJES KUMAR, J. RAJES KUMAR J. This is a revision under section 11 of the U.P. Trade Tax Act, 1948 (called the Act , for short) against the order of the Tribunal dated November 22, 2006 relating to the assessment year 2002-03. The applicant is a public limited company incorporated under the Indian Companies Act, 1956 (called the 1956 Act , for brevity). It is registered under the Act and under the Central Sales Tax Act (hereinafter referred to as, the Central Act ) and is carrying on the business of manufacture and sales of sugar, molasses, rectified spirit, denatured spirit, extra neutral alcohol, country liquor and Indian-made foreign liquor. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the claim of rebate under the aforesaid Notification No. 1161 dated April 10, 2000 on the ground that the ENA is not alcohol as its physical property is different from the alcohol and spirit. It is further observed that it is a product of spirit, which has been manufactured by the applicant, and is different from alcohol and spirit. Heard Sri Bharat Ji Agrawal, senior advocate and Sri B.K. Pandey, standing counsel. The learned counsel for the applicant submitted that the ENA is a purified rectified spirit, contains 98 per cent alcohol and is not fit for human consumption. It is nothing but rectified spirit and, therefore, it falls within the definition of alcohol as defined under section 2(aaaa) of the 1939 Act and is also covere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent under the Notification No. 1160 dated April 10, 2000, issued in excise of power under section 3A. ENA being one of the kind of spirit and spurious liquor, it is liable to tax under the said entry. Alcohol, which is defined under the 1939 Act, does not include all kind of spirit and spurious liquor, but only include rectified spirit, denatured spirit and absolute alcohol . He submitted that unless the applicant is able to make out a case that ENA falls within the purview of rectified spirit and denatured spirit, the rebate under the aforementioned Notification No. 1161 dated April 10, 2000 is not admissible as it does not fall within the purview of the definition of alcohol under the 1939 Act. The claim of rebate has been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Point of tax Rate of tax percentage 1 2 3 4 1 Spirits and spirituous liquors of all kinds including methyl alcohol, alcohol as defined under the United Provinces Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939 but excluding country liquors. M or I 32.5% 2 Motor spirits and diesel oil as defined under the United Provinces Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939 M or I 20% KA.NI.-2-1161/XI-9 (58)/98-U.P. Act-15-48-0rder-2000 Dated April 10, 2000 WHEREAS, the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed form or may be in purified form or un-purified form but if they have characteristics of rectified spirit, it will remain rectified spirit. There is no reason to narrow down the meaning of rectified spirit. It includes all rectified spirit in all forms. Therefore, in my view, it is necessary to examine whether ENA, which is claimed to be purified rectified spirit containing 98 per cent alcohol and is not fit for human consumption ceases to be rectified spirit. No enquiry or investigation has been made in this regard by the authorities below. Therefore, in my view, the matter requires reconsideration. In the result the revision is allowed. The order of the Tribunal dated November 22, 2006 is set aside and the matter is remanded back to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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