Allahabad High Court
M/S The Baghpat Cooperative Sugar ... vs Commissioner Of Commercial ... on 30 August, 2013
Bench: Arun Tandon
HIGH COURT OF JUDICATURE AT ALLAHABAD
?Court No. - 10
Case :- SALES/TRADE TAX REVISION No. - 663 of 2013
Applicant :- M/S The Baghpat Cooperative Sugar Mills Ltd.
Opposite Party :- Commissioner Of Commercial Taxes, U.P. Lucknow
Counsel for Applicant :- Krishna Agrawal
Counsel for Opposite Party :- C.S.C.
Hon'ble Arun Tandon,J.
This Commercial Tax Revision is directed against the order of the Commercial Tax Tribunal, Meerut dated 20.05.2013 passed in Second Appeal No. 159 of 2010 (Assessment Year 1998-99).
The Tribunal under the order impugned has affirmed the findings recorded by the Assessing Authority as well as those recorded by the First Appellate Authority qua there being sale of diesel by the assessee to the transporter and, therefore, on the price of diesel supplied to the transporter, the assessee has been held liable for payment of tax. The Tribunal has further affirmed the order of the First Appellate Authority insofar as it has reduced the tax liability by Rs. 7320.00 because of wrong application of the rate of tax.
Counsel for the assessee challenging the order passed by the Tribunal submitted before this Court that the assessee had entered into a contract with the transporter for transportation of sugarcane purchased by it at various purchase centres to the factory premises of the assessee. The assessee for the purposes of transportation made purchases of diesel to the extent of 3,52,000 litres. It is his case that this diesel was supplied to the transporter for being used exclusively for the purposes of transportation of sugarcane purchased by the assessee, therefore, according to him there has been no sale of diesel to the transporter concerned so as to attract any tax liability under the Trade Tax Act. For the proposition he has placed reliance upon the judgment of the Uttrakhand High Court in the case of Commissioner, Sales Tax U.P., Lucknow vs. Executive Engineer, P.W.D., Pithoragarh reported in STI 2006 Uttranchal H.C., 43.
I have heard learned counsel for the parties and have gone through the records of the present revision.
From the findings recorded by the Tribunal it is apparent that the assessee had made purchase of diesel to the extent of 3,52,000 litres from outside the State of U.P. out of which he had supplied 1,97,258 litres to the transporter. The price of the diesel so supplied was received by the assessee by deducting the relevant amount from the bills issued by the transporter.
In these circumstances it has been held by the tax authority that there had been sale of diesel to the transporter, therefore, the liability of tax fastened upon the assessee has been upheld.
In my opinion all the ingredients of sale stands satisfied in the facts of the case i.e. supply of goods to the dealer and the consideration in shape of money received is established on record. Therefore, this Court finds no illegality in the order of the Tribunal so as to warrant any interference under revisional jurisdiction.
So far as the judgment of Uttrakhand High Court is concerned, suffice is to record that there is no finding as to whether any price was received in respect of cement supplied by the Public Works Department. The judgment is, therefore, clearly distinguishable.
Revision lacks merit and is accordingly dismissed.
Dated :30 .08.2013
VR/CTR 663 of 2013.
