2008 (7) TMI 916 - HC - VAT and Sales Tax

Summary

Issues:
Challenging the legality and validity of the Trade Tax Tribunal's order regarding the taxability of jute rope at a rate of five per cent for the assessment year 1995-96.

Analysis:
The Commissioner of Trade Tax filed a revision against the Trade Tax Tribunal's order assessing the taxability of jute rope at five per cent, contrary to the prescribed rate of eight per cent under Notification No. T.T. 11/146/XI-7(159)/91-U.P. Act-15/48 order 95. The Tribunal justified its decision by comparing the sale of jute rope to tat patti and jute bags. The dealer claimed a lower tax rate of four per cent based on a different notification. The Department argued that jute rope falls under "jute goods" taxable at ten per cent. However, the Tribunal found no evidence supporting this claim and relied on previous decisions regarding the taxability of similar commodities under a different notification (No. 7036).

The Tribunal's factual finding that jute rope does not fall under "jute goods" and its reliance on previous decisions regarding similar commodities under Notification No. 7036 were upheld. The court noted that the Department failed to provide any evidence to support its claim. The revision was dismissed as the standing counsel could not present any material to challenge the Tribunal's decision. The court summarily rejected the revision, affirming the Tribunal's decision on the taxability of jute rope at a rate of five per cent for the assessment year 1995-96.