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TMI Blog2010 (1) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Tribunal has not shown any reason for coming to the conclusion that the assessee was manufacturing oil by way of expeller in the assessment year 2003-04. For use of diesel, which is also totally without any evidence to show that the diesel was used or produced for the purpose of manufacturing. Decided in favour of the assessee - - - - - Dated:- 5-1-2010 - BHARATI SAPRU, J. Ms. BHARATI SAPRU J. Heard learned counsel for the revisionist and the learned standing counsel for the Department. As the controversy involved in these two revisions is identical, the same is being decided by a common judgment and order treating the Commercial Tax Revision No. 1987 of 2008 as leading case. The Commercial Tax Revision No. 1987 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of U.P.? (E) Whether any adverse inference can be drawn against applicant for non-maintenance of manufacturing register as per section 12(2) of the U. P. Trade Tax Act, when the product manufactured by the applicant is itself exempt under the Act? The facts of the case are that the assessee was engaged in the manufacture of oil from oil seeds. After the oil is extracted, rough material emerges which is known as khal and therefore this is the by-product that emerges after the extraction of oil. A survey was made on June 26, 2003 on the business premises of the assessee and at the time of survey, no manufacturing of the oil was found to be done. No stock of any oil or oil cake was also found during the survey. On the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of a presumption as there is no discussion or reason given or evidence to show that the expeller was actually used and to what capacity. Being aggrieved by the order dated January 12, 2007, the assessee had filed first appeal under section 9 of the Act, which was dismissed. The assessee thereafter moved a second appeal which too had also been dismissed by the Tribunal. Having heard learned counsel for the assessee at length and learned standing counsel, I am of the opinion that the imposition of purchase tax on the assessee for the manufacture of khal is bad because the imposition of tax can only be made on the manufacturer under section 12(2) of the Act, which is liable to pay tax. Since the assessee was exempted from payi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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