9911796707
TMI Blog2013 (8) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... , allow the Applications for condonation of delay and, thereby, condone the delay in preferring these Revision Applications. 2. Revisionist, in these Revision Applications, is an Association of registered cooperative societies of people, who reside in or around forest areas. On a licence granted by the Forest Department to the revisionist, people associated with the associated cooperative societies of the revisionist enter the forest permitted to be entered by such licence upon deposit of a sum of Rs. 10,000/-, as and by way of security, for the purpose of collection of Jhula Ghas (a variety of Lichen). The licence, thus granted by the Forest Department, permits those people to collect such lichen with obligation to store the same in the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... replied by the revisionist, nor the revisionist appeared before the Assessing Officer on the date fixed for hearing. The Assessing Officer, taking note of the fact that it was the assessee, who was collecting lichen from the earmarked forest and paying royalty on the basis of weight of removed lichen, held that licensee was carrying out manufacturing/production activity and one of the cost thereof was royalty and that, therefore, when such produce was sold by the revisionist, Trade Tax Act required the revisionist to pay trade tax thereon. 4. Against the assessment orders, appeals were preferred. The Appellate Authority also proceeded on the basis that it was the assessee, who was collecting lichen and, for that purpose, as was required, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court rendered in the case of State of H.P. and others vs. Gujarat Ambuja Cement Ltd. and another, reported in (2005) 6 SCC 499, and also proceeding on the basis that the privilege to collect lichen having been parted with in consideration of payment of royalty, which is not purchase price, the revisionist was liable to pay trade tax whether trade tax was or was not collected on the royalty. 6. In view of the pronouncement made by the Hon'ble Supreme Court in the case referred to above, there cannot be any dispute that royalty is not the purchase price. Royalty is consideration for grant of a right or a privilege. Therefore, in the instant case, in the event, concession to enter the jungle to collect lichen was granted by the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, but, in fact, the same was nothing but consideration for transfer of proprietary right in the movable property of lichen upon payment of consideration fixed by the Forest Department. Knowing that it was a consideration for transfer of proprietary right in the movable property of lichen by the Forest Department to the revisionist, the Forest Department, as duty bound, charged trade tax as it was liable to do under the U.P. Trade Tax Act. 8. We, accordingly, allow the Revision Applications, set aside the judgment and order of the Tribunal as well as of the Appellate Authority and the Assessing Authority, and restore the original assessment orders, which were sought to be re-opened under Section 21(2) of the U.P. Trade Tax Act and also s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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