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2015 (6) TMI 738 - UTTARAKHAND HIGH COURT

2015 (6) TMI 738 - UTTARAKHAND HIGH COURT - [2015] 86 VST 96 (Utk) - Violation of Section 4-B(5) - Whether the learned Tribunal was legally justified in holding, as per facts and circumstances of the case, that there is no violation of Section 4-B(5) of Trade Tax Act - Held that:- A perusal of Section 4-B(2) of the Act would show that it contemplates grant of recognition certificate when a dealer requires any goods referred to in sub-section (1) for the purpose of either manufacturing goods or p .....

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ities has invoked Section 4-B(5) and imposed penalty in the matter.

Tribunal which is a final fact finding authority as only on a substantial question of law, a revision can be successfully premised under the Act. The fact finding authority has found that neither is there finding of the authority that the assessee was caught selling packing material or raw material in the same form and condition in which it was purchased. It is found that the State could not submit any proof which ma .....

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s such. What is material referred to is the fact that the packing material is returned back and it is separately accounted in the ledger. - Under the terms, the recognition certificate, the material purchased against Form 3-B was to be used for packing. There was nothing to show that it was not so used. In such circumstances, we see no reason to interfere with the order of the Tribunal. - Decided against Revenue. - Commercial Tax Revision No. 31 of 2010 - Dated:- 2-6-2015 - K. M. Joseph, CJ And .....

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,561.21. The assessee had purchased these packing materials on the strength of declaration under Section 3-B of the U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act ). It was found that the sale of packing material in the same form and condition violated Section 4-B(5) of the Act. Accordingly, penalty equal to twice at the rate of 10%, namely, ₹ 1,99,712/- was imposed by the Assessing Officer, vide Annexure -1. The appeal before the 1st Appellate Authority was unsuccessful, but .....

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has ever been caught selling packing material or raw material in the same form and condition in which it was purchased by him against Form 3-B nor the facts available on record reveal such position. The learned State-Representative too could not submit any proof which may lead to a conclusion that the assessee has actually sold the packing material separately to the dealers in the form and condition in which the same was purchased against Form 3-B. Rather the manufacturer has used the said mate .....

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follows :- Whether the learned Tribunal was legally justified in holding, as per facts and circumstances of the case, that there is no violation of Section 4-B(5) of Trade Tax Act? 3. We heard the learned counsel for the State/revisionist Shri H.M. Bhatia and Shri Mohit Maulekhi, learned counsel on behalf of the respondent. 4. Section 3-B of the Act reads as follows :- 3-B. Liability on issuing false certificates, etc.- Notwithstanding anything to the contrary contained elsewhere in this Act, a .....

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such transaction had such certificate or declaration not been issued: Provided that before taking any action under this Section, the person concerned shall be given an opportunity or being heard. Explanation.- Where a person issuing a certificate or declaration discloses therein his intention to use goods purchased by him for such purpose as will make the tax not leviable at a concessional rate but uses the same for a purpose other than such purpose, the certificate or declaration shall, for th .....

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manufacture by him, in the State of any notified goods or in the packing of such notified goods manufactured or processed by him, and such notified goods are intended to be sold by him in the State or in the course of inter-State trade or commerce or in the course of export out of India, he may apply to the assessing authority in such form and manner and which such period as may be prescribed, for the grant of a recognition certificate in respect thereof; and if the applicant satisfies such requ .....

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ls or lubricants; and (b) notified goods means such goods as may, from time to time, be notified by the State Government in that behalf. And finally we come to Section 4-B(5) of the Act, which reads as follows :- 4-B. Special relief to certain manufacturers.- (5) Where a dealer in whose favour a recognition certificate has been granted under sub-section (2) has purchased the goods after payment of tax at concessional rate under this section, or as the case may be, without payment of tax and has .....

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. A perusal of Section 4-B(2) of the Act would show that it contemplates grant of recognition certificate when a dealer requires any goods referred to in sub-section (1) for the purpose of either manufacturing goods or processing goods by him which are notified goods or in the packing of such notified goods. Then we come to Section 4-B(5) of the Act. It contemplates a situation where a dealer, who has a recognition certificate, purchases goods either on concessional rate or without paying any ta .....

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urchased the packing material (corrugated boxes) on the strength of the recognition certificate and on declaration under Section 3-B and purportedly for using the same for packing the goods manufactured by it, but it has sold the packing material separately and in the condition in which it was purchased. It was neither used in the manufacturing of any goods, nor was used for packing. This fact sought to be proved the fact that in the accounts the cost of the packing material is separately shown .....

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ck but packing tray is returned back. As far as the accounts separately reflecting the cost of the packing material is concerned, he would put it down to accounting practice and he would submit that actually in the invoices raised it is only a consolidated sum shown which includes the price of the packing. 8. We are concerned with the finding by the Tribunal which is a final fact finding authority as only on a substantial question of law, a revision can be successfully premised under the Act. Th .....

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