2014 (1) TMI 723 - HC - VAT and Sales Tax

Assessement of Base production - Whether turnover of the base production in accordance with clause (6) of the Notification No. 1093 dated July 27, 1991 has to be taken up for the whole of the assessment year - Held that - Following decision of Commissioner Of Trade Tax, UP. Versus Malviya Chemical And Pharmaceutical Private Limited 2007 (11) TMI 397 - SUPREME COURT OF INDIA - Decided in favour of assessee. Whether Notification No. 7038 dated 31.1.1985 as amended by Notification No. 595 dated 10.4.1999 will cover the tax liability in respect to Chicory Roots or it is Notification No. 306 dated 29.1.2001 - Held that - Chicory Roots are specifically mentioned in the Notification dated 29.1.2001 while the Notification dated 31.1.1985 as amended by Notification No. 595 dated 10.4.1999 contain a general entry with respect to fresh roots. It is well settled that a special provision shall prevail over a general provision. When the Chicory Roots are specifically covered by independent Notification dated 29.1.2001, the contention that it shall be covered by general entry mentioned in any other Notification is not correct - Decided in favour of assessee.

Summary

Issues:
1. Interpretation of exemption under Section 4-A (2) (c) of U.P. Trade Tax Act, 1948.
2. Applicability of Notification No. 7038 dated 31.1.1985 and Notification No. 595 dated 10.4.1999 concerning tax liability for Chicory Roots.

Analysis:
1. The judgment addresses two questions of law concerning different financial years. The first issue pertains to whether the exemption under Section 4-A (2) (c) of the U.P. Trade Tax Act, 1948 applies to base production or production in excess to base production, and whether it is determined with reference to the date of production or the entire year of production. The court refers to a previous ruling in M/S Malviya Chemicals and Pharmaceuticals Pvt. Ltd. case where the Apex Court upheld the view that the exemption is in respect to base production. The matter is remanded to the Assessing Authority for further examination based on the previous decisions.

2. The second issue revolves around the interpretation of Notification No. 7038 dated 31.1.1985 as amended by Notification No. 595 dated 10.4.1999 in comparison to Notification No. 306 dated 29.1.2001 regarding the tax liability for Chicory Roots. The court clarifies that Chicory Roots are specifically mentioned in the later Notification dated 29.1.2001, which prevails as a special provision over the general entry in the former Notifications. Therefore, the Chicory Roots are to be taxed based on the specific notification dated 29.1.2001. Consequently, the orders of the Tribunal are modified, and the Assessing Authority is instructed to decide the matter in accordance with the court's directions.

Overall, both revisions are disposed of accordingly, with the court providing detailed analysis and clarification on the interpretation of the relevant provisions and notifications in the context of the U.P. Trade Tax Act, 1948.