2003 (4) TMI 596

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..... l was used manufacturing of free wheel, and in the process of manufacturing some iron and scrap was obtained which was transferred by the applicant to Delhi Branch for sale. The Assessing Authority levied the penalty under Section 4-B (5) of the U. P. Sales Tax Act at ₹ 35,000 on the ground that the applicant purchased iron and steel at concessional rate and dispatched iron scrap to Delhi Branch which was also iron and steel, thus, violated Section 4-B (5) of the Act. 3. The dealer filed the appeal before the Deputy Commissioner (Appeals) which was allowed and the penalty imposed under Section 4-B (5), was cancelled. 4. The Deputy Commissioner (Appeals) had held that the dealer was holding Recognition Certificate and .....

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..... iate section of the Act. 10. Section 4-B (5) is applicable when the case is made out that raw material is purchased at a concessional rate of tax and used for the purpose other than that for which the Recognition Certificate was granted or has otherwise disposed of the said goods. 11. Deputy Commissioner (Appeals) has recorded categorical findings that the entire raw material was purchased against Form 3-B were used in the manufacturing of notified goods and has not been used for the purpose other than for which the Recognition Certificate was granted or has otherwise disposed of and hence the provisions of Section 4-B (5) was not applicable. The Tribunal has accepted the view of the Deputy Commissioner (Appeals) and has h .....

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..... . Therefore, the Tribunal has exceeded to its jurisdiction in considering the issue with regard to the contravention of Section 4-B (6) which was not the subject-matter in appeal under Section 9 before the Deputy Commissioner (Appeals). 13. It is stated that even on the facts, it is doubtful whether the provisions of Section 4-B (6) was applicable or not. The scrap which was obtained during the process of manufacturing, which was dispatched to Delhi by way of stock transfer, was not the notified goods, which can be said to be disposed of otherwise than by way of sale in U. P. or the course of inter-State trade or in the course of export out of the territory of India. 14. For the reasons given above, the order of the Tribun .....

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