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TMI Blog2007 (9) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... and balance poultry feed which is exempt from payment of sales tax despite the fact that cattle feed is taxable as an unclassified commodity? Whether the Sales Tax Tribunal was legally justified to hold that the assessee was not liable for tax on sale of blue detergent cakes as it was sold after purchasing from Carona Cosmetics and Chemicals Ltd., Kanpur a unit holding eligibility certificate granted under section 4A of the Act despite the fact that this dealer himself is a manufacturer in the real sense of the aforesaid commodity? Held that:- So far as question No. (i) is concerned,A similar question came up for consideration before this court in the case of dealer itself for the assessment year 1983-84 in revision No. 49 of 1990 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent parties were the second sales and thus, not liable to tax. The order of the Tribunal is upheld and the question is decided in favour of the dealer. Revision dismissed. - - - - - Dated:- 11-9-2007 - RAJES KUMAR , J. RAJES KUMAR J. Present revision under section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act ) is directed against the order of the Tribunal dated May 4, 1993 for the assessment year 1986-87. At the instance of the Revenue, the following questions have been raised: (i) Whether the Sales Tax Tribunal was legally justified to hold that filtered coconut oil is taxable under the category of oil of all kinds at the rate of four per cent despite the fact that the aforesaid commodity falls ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry oil of all kinds and liable to tax at four per cent. The Tribunal held that merely because coconut oil is filtered and packed in tin container it does not cease to be oil. The Tribunal further held that the Commissioner of Trade Tax has issued a circular dated December 19, 1989 directing all the assessing authorities to treat filtered coconut oil under the entry of oil of all kinds . A similar question came up for consideration before this court in the case of dealer itself for the assessment year 1983-84 in revision No. 49 of 1990 and for other assessment years in revisions Nos. 60, 61, 62 and 63 of 1990. This court vide order dated September 5, 1997 upheld the order of the Tribunal and held that filtered coconut oil is liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7(1). In the case of Ranadey Micronutrients v. Collector of Central Excise [1996] 10 SCC 387, this court held that the whole objective of such circulars is to adopt a uniform practice and to inform the trade as to how a particular product will be treated for the purposes of excise duty. The court also held that it does not lie in the mouth of the Revenue to repudiate a circular issued by the Board on the basis that it is inconsistent with a statutory provision. Consistency and discipline are, according to this court, of far greater importance than the winning or losing of court proceedings. In the case of Collector of Central Excise v. Jayant Dalal Private Ltd. [1997] 10 SCC 402 this court has held that it is not open to the Revenue to adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied upon and approved by the division Bench of this court in the case of Liptons India Ltd. v. State of U.P. reported in [2008] 18 VST 148 [App.]; [2007] UPTC 1008. So far as poultry feed is concerned, the division Bench (1)See [1998] 111 STC 254 (SC). of this court in the case of Piya Pharmaceuticals Works v. Deputy Commissioner (Executive), Sales Tax, Ghaziabad reported in [1998] UPTC 209 has held that the balanced poultry feeds is covered under the poultry feeds supplements and exempted from tax. Following the aforesaid decisions, the order of the Tribunal is upheld and the question is answered in favour of the dealer. Coming to the question No. (iii), the brief facts are that the dealer-opposite party had purchased the blue deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the terms of the agreement, Karona Cosmetics and Chemicals Ltd., Kanpur had purchased the raw materials, chemicals, etc., as per specification and the quality prescribed by the dealer it cannot be said that the manufacturing was carried on on behalf of the dealer. The terms of the agreement reveals that agreement was for the sales on principal-to-principal basis. Therefore the sales of blue detergent bars and cakes purchased from Karona Cosmetics and Chemicals Ltd., Kanpur by the dealer to different parties were the second sales and thus, not liable to tax. Reliance is placed on the decision of this court in the case of Commissioner of Trade Tax v. D.C.M. Ltd. Daurala Sugar Works, Daurala reported in [2008] 14 VST 27; [2007] UPTC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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