9911796707
TMI Blog2013 (4) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Year 2001-02. 3. It has been stated that the petitioner was a society, registered with U.P. Khadi Gram Udyog Board, Lucknow and engaged in business approved by Khadi Gram Udyog Board. It is registered also under the provisions of U.P. Trade Tax Act as well as Central Sales Tax Act. State of U.P., in exercise of powers under Section-4(b) of the Act, issued Notification No. 7037 dated 31.01.1985 granting exemption from sales tax liability on the sale of various goods mentioned in the list, by the units of Khadi Gram Udyog Board. Clause 10 of Entry No. 3 of this Government Order provides "vukt ,oa nky] Likbl] dkafMesaV] elkyk vkfn dh dqVkbZ] NVkbZ vkSj lQkbZ ¼izkslsflax½] losZ"Bu vkSj foi.ku" i.e. "hulling, cutting/trimm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit of the petitioner was not liable for exemption from the trade tax, as such, the exemption granted to the petitioner amounted to escaped assessment. On the basis of the sanction granted by respondent-2, re-assessment has been done by respondent-3. The order of re-assessment has been challenged by the petitioner on the ground that reassessment proceeding has been started on the basis of Notification dated 30.09.2004, which will apply prospectively and not retrospectively. Accordingly, reassessment for the Assessment Year 2001-02 is illegal. 5. The respondents have filed counter affidavit, in which it has been stated that the word 'processing' has been used in Clause 38 of Entry-3. The manufacture of rice from paddy is not proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd not on manufacture under the Government Order dated 31.01.1985 as amended by Government Order dated 27.02.1997. This position has been clarified by the Government Order dated 30.09.2004, which being clarificatory in nature applied retrospectively. 8. The arguments raised by the Special Counsel is misconceived. Under the Government Order dated 31.01.1985, the exemption from trade tax liability has been granted on the sale of the products by the Units of the Khadi Gram Udyog Board. Specifying the products, in clause-38 of Entry-3, the words "hulling, cutting/trimming, processing, packaging and marketing of cereals" have been used and not "processing of paddy". The hulling of the cereal is nothing but hulling of the paddy for manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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