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TMI Blog2013 (4) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (for short, the Corporation), a joint venture of State Government and Central Government, is engaged in production of electricity as well as in development of hydroelectric plants. The Corporation approached the concerned Tax Assessing Officer for recognition in terms of Section 4-B of the U.P. Trade Tax Act, 1948 (for short, the Act) and, accordingly, sought exemption in tax on the articles, equipments, accessories, machineries, plants, etc. purchased in connection with production of electricity, which included construction of dams, tunnels and power houses. List of such articles was supplied by the Corporation to the Assessing Officer. The Assessing Officer allowed the benefit of Section 4-B of the Act only in respect of those articl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. 3. The Corporation claimed that though the above items were not used directly for the generation of the electricity, but the same are essential requirements in the manufacturing of the electric plants and in the construction of dams, tunnels and powerhouses as well as the linked roads. The Assessing Officer did not accede to this argument and he levied the tax stating that the same is justified in accordance with the provisions contained under Section 4-B(2) of the Act. 4. On appeal by the Corporation, Joint Commissioner (Appeal), upheld the order of the Assessing Officer. Feeling disgruntled, the Corporation preferred Second Appeal before the Commercial Tax Tribunal, Dehradun, and the learned Tribunal overturned the order of the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form, and subject to such conditions, as may be prescribed." 8. It is also pertinent to quote here the relevant notification, issued by the State of Uttar Pradesh (applicable to the State of Uttarakhand), and the same reads as under:- "T.I.F.-2-2383/XI-9(251)/97-U.P. Act-15-48-Order-98 dated 23-11-1998. In exercise of the powers under section 4-B of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904) and in supersession of all the previous notifications issued under the said section 4-B, the Governor is pleased to declare that with effect from December1, 1998, and subject to conditions and restrictions specified in the said section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distilleries and breweries: Provided further that where any declared goods liable to tax under sub-section (1) of section 3-D of the said Act are sold or supplied by a dealer, who is the first purchaser thereof, to another dealer holding a valid recognition certificate issued under sub-section (2) of the said section 4-B, the dealer making such sale or supply shall, on furnishing to the Assessing Authority within the time prescribed a declaration in Form 3-B obtained from the dealer to whom such goods were sold or supplied, be liable to tax at the rate of two percent on the turnover of first purchase of such goods." 9. The sole argument put forth before this Court on behalf of the Department/revisionist was that all these items, indicated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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