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TMI Blog2010 (5) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts to the payment of tax by way of adjustment. Section 4BB has not prescribed the manner of payment of tax and manner of payment cannot be confined to payment by actual tender but it would include payment of tax by adjustment also. In favour of assessee. - - - - - Dated:- 11-5-2010 - PANKAJ MITHAL , J. PANKAJ MITHAL J. The Revenue has preferred this revision under section 11(1) of the U.P. Trade Tax Act, 1948 (hereinafter for short, the Act ) against the order of the Trade Tax Tribunal, Kanpur, dated June 28, 2002, whereunder the assessee/opposite party has been allowed the benefit of set-off under section 4BB of the Act. The dispute in this revision relates to the assessment year 1998-99. The assessee/opposite party is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial within the State of U.P. and such material is used in manufacturing or packing of any finished goods as notified, the amount of tax paid on purchase of such raw material or packing material shall be deducted from the tax payable on sale of such finished goods. There is no dispute that the dealer, M/s. Mahaveer Rolling Mills (P) Limited, from whom the assessee has purchased raw material/packing material is fully exempt from the payment of tax under section 4A of the Act and has been issued an eligibility certificate in that regard. The raw material/packing material so sold to the assessee is within the permissible limits of the eligibility certificate. The material so sold has been used by the assessee in manufacture of the finishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erce, the amount of tax paid on the purchase or sale of the raw material or packing material shall, subject to such conditions and restrictions as may be specified in the said notification, be deducted from the tax payable on the sale of such goods (a) inside the State, to the extent the tax has been paid on the purchase or sale of raw material or packing material from which the goods sold inside the State were manufactured or packed; (b) in the course of inter State trade or commerce, to the extent the tax has been paid on the purchase or sale of raw material or packing material, from which the goods sold in the course of inter State trade or commerce were manufactured or packed: Provided that the amount of tax to be deducted u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut actual payment of tax. The provision of section 4BB stipulates payment of tax. The manner in which the said tax is payable is not described. The payment of tax can be by tendering the amount physically by cash, cheque or draft or it can also be by some adjustment. There is no prohibition in the Act from making payment of tax by way of an adjustment. When the amount of tax determined and payable by the dealer is accounted for and is given due adjustment in the eligibility amount, it amounts to payment of tax or receipt of tax by the Revenue. Thus, non-grant of the set-off/deduction to the assessee under section 4BB of the Act of the amount of tax payable by him on the purchase of raw material/packing material from the dealer, Mahaveer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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