TMI Blog2005 (5) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on the purchase of such raw material, which was used in the manufacture of wire. The dealer has purchased the raw-material without payment of any tax to the tune of ₹ 1,23,23,525.45 weighing 2620355 MT against Form 3-B. Indisputably the dealer opposite party did not sold entire manufactured goods either in State of U.P. or in Center or to export out of India. It has transferred 1347.354 MT of manufactured goods by way of stock transfer. The proceeding under Section 3B of the Act was initiated to recover the amount which would have been payable as tax on the purchase of corresponding raw material used for the manufacture of steel wire transferred by way of stock transfer. After giving show cause notice and affording opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en payable but has not been paid on account of any false or wrong declaration made by a party to a transaction to the other party of the transaction. Section 3B of the Act prescribes two conditions for its applicability. They are, issue of false or wrong certificate for declaration coupled with the condition by reason of which the tax assessed ceases to be leviable or become leviable at the concessional rate. Explanation attached to Section 3B lays down that where a person issuing certificate or the declaration discloses therein his intention to use the goods purchased by him for such purposes, as will make tax not leviable or leviable at the concessional rate but uses the same for the purposes other than such purpose, the certificate or de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases. It is also not in dispute that the dealer opposite party had sent 1347.354 MT by way of stock transfer. 7. Strong reliance was placed on a Division Bench judgment of this Court in the case of Campher Allied Products Limited vs. State of U.P. reported in 2004 NTN (Vol. 24) 316; 2004 UPTC 331. It was held that the liability under Section 3B cannot be fastened for the reasons that Fuel is not raw-material for the purchase of finished goods. The Fuel was used in the manufacture of notified goods for which recognition certificate was granted. The Division Bench has held that there is no false or wrong declaration by the dealer, in as much as the Fuel was used in the manufacture of the notified goods. The controversy in the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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