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TMI Blog2010 (4) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... suitable writ, order or direction in the nature of certiorari be issued declaring entry No. 6(b) and 6 (a) of the Notification No. 1626 dated May 21, 1994 as invalid and void. (iv) that a suitable writ, order or direction in the nature of mandamus or prohibition be issued restraining/prohibiting the respondents from realising any tax to the imported iron and steel as defined under section 14 of the Central Sales Tax Act and which are sold within the State of U. P. as local sales within the State of U. P. under section 3A at a higher rate of tax prior to the issuance of the notification dated May 22, 1998. (v) that any other suitable writ, order or direction which this honourable court may deem fit and proper in the circumstances of the case be also issued in favour of the petitioner. (vi) that costs of the petition be awarded to the petitioners as against the respondents." Brief facts giving rise to the present writ petition are that the petitioners are registered dealers both under the U. P. Trade Tax Act as well as under the Central Sales Tax Act. Petitioner No. 1 was carrying on the business of purchase and sale of iron scrap and petitioner No. 2 was also carrying on the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax on groundnut oil or refined nil which has been obtained from groundnuts that have not been taxed under the Andhra Pradesh Act. It has been declared that the groundnut oil imported by the assessee from Karnataka for sale in Andhra Pradesh cannot be taxed at a higher rate than the rate prescribed in clause (b) of entry 24 of the First Schedule to the Andhra Pradesh Act. He also relied upon the decision of the apex court in the case of State of Uttar Pradesh v. Laxmi Paper Mart reported in [1997] 105 STC 1 (SC). (paras 2 and 3). Sri S. P. Kesarwani, learned Additional Chief Standing Counsel, submitted that the intent of the Legislature was to levy tax at four per cent on all iron and steel, in case, where the iron and steel was manufactured out of the raw material on which the tax was paid, it was made taxable at two per cent because the raw material has already been subjected to tax at two per cent in view of Notification No. 1626 dated May 21, 1994 issued in exercise of power under section 4B of the Act while in the case of other iron and steel covered under entry 6(b), such goods were not subjected to tax within the State of U. P. Therefore, entry 6(b) of Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 3A of the U. P. Sales Tax Act, 1948 (U.P. Act No. XV of 1948) read with section 21 of the U. P. General Clauses Act, 1904 (U. P. Ac No. 1 of 1904), and in supersession of all previous notifications issued under section 3AA of the said Act as it stood before its amendment by the Uttar Pradesh Sales Tax (Amendment and Validation) Ordinance 1981 (U. P. Ordinance No. 12 of 1981), the Governor is pleased to declare that, with effect from September 7, 1981, the turnover in respect of the goods mentioned in column 2 of the list below shall be liable to tax at the point of sale specified in column 3 of the said list a the rate specified against each in column 4 thereof: Sl. No. Description of Goods Point of tax Rate of tax 1 Coal including coke in all its forms, but excluding charcoal. Sale to consumer 4 per cent. 2 Cotton as defined in section 14 of the Central Sales Tax Act, 1956. Sale to consumer 4 per cent. 3 Cotton yarn but not including cotton yarn waste. M or I 2 per cent. 4 Crude oil as defined in section 14 of the Central Sales Tax Act, 1956. Sale to consumer 4 per cent. 5 Hides and skins, whether in a raw or dressed state. Sale to consumer 4 per ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry, the oil imported from Karnataka into Andhra Pradesh was liable to tax at the point of manufacturer or importer at the rate six and half paisa in the rupee. The oil manufactured in Andhra Pradesh was liable to tax at the point of first sale at the rate two and half paisa in the rupee. The apex court examined the constitutional provisions and various decisions including the decision of the-apex court in the case of Video Electronics Pvt. Ltd. v. State of Punjab [1990] 77 STC 82; [1990] UPTC 571 and held as Mows (at page 594 of 107 STC): "24. We are of the view that the contention of the appellant is not without substance. What has been done by entry 24 of the First Schedule is to impose a lower rate of duty on groundnut oil or refined oil obtained from groundnuts that have been taxed under the A. P. Act. The contention that groundnut oil manufactured in Andhra . Pradesh has not generally been charged at a lower rate of tax has not been substantiated by any fact or figure. It is not the case of the State that only a small portion of the oil manufactured by local manufacturers is produced from groundnut purchased in Andhra Pradesh. Unless that can be established, it cannot be he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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