9911796707
TMI Blog2022 (5) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... in the DAP was rightly charged at the rate of Rs.1494.80 rather than Rs.1381.30 per metric ton in light of the fact that the Government of India had enhanced the rates of DAP with effect from 29/01/1999, which would be the relevant date for implementation of the enhanced rate of Trade Tax. 2. The revisionist is engaged in the business of manufacturing of Chemical Fertilizer at its unit at Jagdishpur. 3. During the financial year 1999 - 2000 the assessment of the revisionist was carried out and the Assessing Authority assessed the Tax on sale of DAP on the value of Nitrogen content at the rate of Rs. 1490.80 per metric ton, calculated the Tax @6.5% there on. 4. The Revisionist being aggrieved by the said assessment preferred an appeal be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 25 of the Uttar Pradesh Trade Tax Act 1948 it was provided that no Tax under the said Act shall be payable on the sale of Potash and Phosphatic component of the Chemical Fertilizers during the period 1st April, 1998 to 31st March, 2000. It was also provided that the percentage of the different components of the Chemical Fertilizers shall be determined according to the guidelines issued by Department of Agriculture, Uttar Pradesh from time to time. In the same notification it is mentioned that the Department of Agriculture has determined the value of the Nitrogen component in DAP to be Rs.1381.30 per metric ton. 8. Further, the above notification also provided that the value of Nitrogen in DAP is liable to be taxed and the value of Nitro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P was fixed at Rs.1381.30. Subsequently the value1381.30. Subsequently the value of DAP was enhanced by the Union of India on 29/1/1999. The notification of the Commissioner, Trade Tax dated 26/02/2000 referred to the said enhancement of rate of DAP and consequent enhancement of value of the Nitrogen component in the DAP vide circular issued by the Department of Agriculture which was given wide circulation. There is no dispute that prior to notification dated 26/02/2000 the notification dated 27th May, 1998 was in existence. 12. It has been contended by the counsel for the revisionist that the notification dated 27.5.1998 held field till it was amended/modified by the subsequent notification related 26.02.2000. It is, therefore, contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commercial Tax Department or the Agricultural Department enhancing the rate of the Nitrogen component in DAP. The first appellate court as well as Commercial Tax Tribunal have both while disallowing the claim of the revisionist have held that at the moment the rate of DAP were enhanced by the Central Government vide its order dated 29.1.1999, the revisionist started collecting the enhanced rate. 15. It is also noticed that the controversy in the present case pertains only to enhanced rate of nitrogen component in DAP as distinguished from enhanced rate of tax on Nitrogen component which remained at 6.5 percent. It is not a case where there was any change in the rate of tax but only rate of nitrogen for the purpose of levying Trade Tax was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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