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TMI Blog2000 (7) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of sales tax on the gunny bags which were used in the packing of sugar. The assessing authority did not accept the claim put forward by the applicant and imposed sales tax on the value of the gunny bags treating it to be an implied sale. 2.. The first appeals filed by the applicant were dismissed by the first appellate authority which orders have been upheld by the Trade Tax Tribunal, Bench 4, Agra in second appeals filed by the applicant vide order dated September 25, 1999. The applicant is aggrieved against the aforesaid order of the Tribunal. 3.. I have heard Shri V.K. Birla, learned counsel appearing for the applicant and Shri B.K. Pandey, learned Standing Counsel, who represented the respondent. 4.. The learned counsel for the applicant submitted that the applicant having not charged any price for the gunny bags which it had used in the packing of sugar while effecting the sale of sugar to its customers cannot be subjected to tax on the ground of implied sale of gunny bags. He submitted that this Court in series of decisions have held that unless a separate price is charged for the gunny bags, the supply of sugar in gunny bags would not result in specific sale o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le sugar and not of levy sugar as would be clear from the findings recorded by the Tribunal which has been reproduced above. 8.. The decision of this Court in the case of the applicant reported in Chhatta Sugar Company Ltd. v. Commissioner of Sales Tax 1991 UPTC 341 relates to the sale of levy sugar as in that case the price fixation done by the Central Government in respect of levy sugar was taken into consideration. It did not relate to free sale sugar. Thus, the said decision is not at all applicable to the facts of the present case. On the other hand the principles laid down by this Court in the case of L.H. Sugar Factory 1996 UPTC 101, U.P. Sugar Co. Ltd. 1999 UPTC 326 and Kichha Sugar Co. Ltd. 1999 UPTC 716 are fully applicable. It is not in dispute that the applicant has not charged the price of gunny bags separately from its customers. The price of free sale sugar depends upon a number of factors. No doubt, the cost of gunny bags is taken into consideration in the cost of production of sugar but that by itself does not mean that the applicant has charged or realised the price of gunny bags from its customers while effecting free sale sugar. 9. It may be mentioned here ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rescribed. Section 3-A. Rates of tax.-(1) Except as provided in section 3-D, the tax payable by a dealer under this Act shall be levied, (a) on the turnover in respect of 'declared goods', at the point of sale to the consumer at the maximum rate for the time being specified in section 15 of the Central Sales Tax Act, 1956 or where the State Government, by notification, declares any other single point or a lesser rate, at such other point or at such lesser rate; (b) on the turnover in respect of any food or drink served for consumption in a hotel or restaurant or part thereof, with which a cabaret or floor show is provided therein, at such rate, not exceeding forty per cent, as the State Government may, by notification, declare; (c) on the turnover of spirits and spirituous liquors of all kinds, including methyl alcohol and motor spirit, diesel oil and alcohol as defined under the United Provinces Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939, at the point of sale by the manufacturer or importer or such other single point as the State Government may by notification declare at the rate of twenty per cent or at such rate not exceeding twenty-six per cent, as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase of such goods is exempt from tax at the hands of the dealer." 12.. The Statement of Objects and Reasons while introducing the Bill inserting section 3-AB in the Act was to clarify certain provisions. The Statements of Objects and the Reasons attached to the Bill is reproduced below: "In order to remove difficulties experienced in the implementation of certain provisions of the Uttar Pradesh Sales Tax Act, 1948 and to clarify certain provisions, raise financial resources of the State, grant in the interest of development of industries, exemption from tax to certain units and to validate certain Acts, it was decided to amend the said Act. Since the State Legislature was not in session the Uttar Pradesh Sales Tax (Amendment and Validation) Ordinance, 1990 (U.P. Ordinance No. 10 of 1990) was promulgated for the purpose on April 25, 1990. Replacing Bill could not be introduced due to very short session of the Legislature hence successively U.P. Ordinances No. 17 of 1990, No. 29 of 1990, No. 19 of 1991 and No. 26 of 1991 had to be promulgated. The Uttar Pradesh Sales Tax (Amendment and Validation) Bill, 1991 has been prepared to replace the aforesaid Uttar Pradesh Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingh's Principles of Statutory Interpretation (Sixth Edn., 1996) under the heading "Declaratory Statutes", the learned author has summed up as follows: "Declaratory statutes.-The presumption against retrospective operation is not applicable to declaratory statutes. As stated in Craies and approved by the Supreme Court: 'For modern purposes a declaratory Act may be defined as an Act to remove doubts existing as to the common law, or the meaning or effect of any statute. Such Acts are usually held to be retrospective. The usual reasons for passing a declaratory Act is to set aside what Parliament deems to have been a judicial error, whether in the statement of the common law or in the interpretation of statutes. Usually if not invariably, such an Act contains a preamble, and also the word "declared" as well as the word "enacted".' But the use of the words 'it is declared' is not conclusive that the Act is declaratory for these words may, at times, be used to introduce new rules of law and the Act in the latter case will only be amending the law and will not necessarily be retrospective. In determining, therefore, the nature of the Act, regard must be had to the substance rath ..... X X X X Extracts X X X X X X X X Extracts X X X X
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