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TMI Blog2011 (1) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... eimbursement of the tax paid under the State law and (2) in the present case the assessee is the manufacturer of kamani. Kamani has not been sold at any stage in the State of U. P. and no tax was levied and paid on the turnover of kamani under the U. P. Trade Tax Act. In the result, the order of the Tribunal is liable to be set aside and the order of the assessing authority is liable to be restored so far as it levies the tax on the inter-State sale of kamani at the rate of four per cent. Accordingly, the revision is allowed X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal and levied tax on such kamani at the rate of two per cent on the ground that in the earlier year two per cent tax has been levied. Heard Sri B. K. Pandey, standing counsel, and Sri R. R. Agrawal, counsel for the assessee. The learned standing counsel submitted that kamani was liable to tax at the rate of two per cent under Notification No. 1626 dated May 21, 1994 issued in exercise of power under section 3A of the U. P. Trade Tax Act, 1948 (called "the Act", for brevity) on the condition that it was manufactured out of the tax-paid raw material. Therefore, the rate of tax at the rate of two per cent on such kamani was conditional and it was not generally liable to tax at the rate of two per cent and, therefore, in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1948 (U.P. Act No. XV of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904), the Governor is pleased to make with effect from June 1, 1994, the following amendment in Government Notification No. ST-2-5782/X-10(1)/80-U.P. Act-XV/48-Order81, dated September 7, 1981, as amended from time to time: AMENDMENT.--In the list to the aforesaid notification for the entry at serial No. 6, the following entry shall, columnwise be substituted,namely:-- S. No. Description of goods Point of tax Rate of tax 1 2 3 4 6. (a) Iron and steel as defined in section 14 of the Central Sales Tax Act, 1956 if manufactured from the raw material on which tax has been paid within the the State under the Ut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The tax at the rate of two per cent is conditional and not general tax on the said commodity and, therefore, in view of the Explanation of section 8(2A) the assessee is not entitled for the benefit of section 8(2A). The aforesaid view is supported by the decision of the apex court in the case of Commissioner of Sales Tax, Jammu and Kashmir v. Pine Chemicals Ltd. reported in [1995] 96 STC 355 (SC); [1995] UPTC 609. The submission of learned counsel for the assessee, that in view of section 15(b) of the Central Act the tax has rightly been levied at the rate of two per cent is misconceived. Section 15(b) does not apply in the present case for the reason--(1) that it contemplates the reimbursement of the tax paid under the State law and (2) i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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