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TMI Blog2019 (11) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... by recording erroneous and perverse findings? HELD THAT:- The issue involved in the present revisions has already been decided by this Court in the inter-parties case of COMMISSIONER, TRADE TAX, UP., LUCKNOW VERSUS SHRI MAHAVEER ROLLING MILLS (P) LTD. [ 2010 (5) TMI 754 - ALLAHABAD HIGH COURT ] where it was held that The dealer, M/s. Mahaveer Iron Industry Pvt. Ltd., who has been given full exemption under section 4A of the Act was assessed to tax on the material sold to the assessee/revisionist and the tax so assessed on the sale of the said goods was deducted from his eligibility amount. Accordingly, it 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 ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the revisionist fulfilled the requisite conditions for the same and the Division Bench of the Tribunal in the preceding assessment year 1998-99 has already allowed the benefit of the same? Whether on the facts and circumstances of the case the impugned order of the Tribunal is sustainable under law specially when the same has been passed in utter ignorance of the material on record and by recording erroneous and perverse findings? The facts of the case are that the revisionist is a Private Limited Company and engaged in the business of manufacturing and sales of iron and steel products. The revisionist is registered under the U.P. Trade Tax Act as well as under the Central Sales Tax Act. The revisionist purchases various raw mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim has wrongly been rejected upto the Tribunal. Learned counsel for the revisionist further submits that the issue involved in the present revisions has already been decided by this Court in the inter-parties case of the Commissioner, Trade Tax, U.P. Lucknow Vs. S/s Shri Mahaveer Rolling Mills (P) Ltd., Kanpur (2010 UPTC 977); wherein, following observation has been made:- Section 4-A of the Act permits exemption to new dealers/ manufacturers from payment of tax for a particular period and to a particular limit on the establishment of new units or investment for the purposes of expansion, diversification and modernization of any of them, if the State Government is of the opinion that it is necessary so to do in granting protection to any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the back drop of the above facts and circumstances the following question of law has been raised for determination in this revision. Whether under the facts and circumstances the assessee is entitle to set off under section 4-BB of the Act from the gross turnover of the purchase value of the raw material which the assessee has purchased from the dealer who is exempt from payment of tax under section 4-A of the Act ? For considering the above question of law it would be beneficial to refer to Section 4-BB of the U.P.Trade Tax Act. which read as under:- 4BB. Set off of tax paid on raw material and packing material in certain cases:- Where tax has been paid on the purchase of sale of raw material or packing material inside the State and su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4-BB of the Act the mode and manner of payment of tax is immaterial. What is relevant is assessment and payment of tax on the purchase/ sale of raw material or packing material. The Scheme of the Act envisages issuance of eligibility certificate to dealer granting exemption under Section 4-A of the Act The said eligibility certificate discloses the amount to the extent of which exemption is permissible to the dealer and the time limit during which said exemption can be availed. The sale and purchase of the goods of the dealer are accounted for and the tax liability on the same on being determined is periodically adjusted from the limit of the exemption provided in the eligibility certificate. In this way there is assessment of tax on the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessment of tax of the dealer and deduction of the same from the eligibility amount amounts to payment of tax. Similar is the situation in the present case. The dealer M/S Mahaveer Iron Industry Pvt Ltd. who has been given full exemption under section 4-A of the Act was assessed to tax on the material sold to the assessee/revisionist and the tax so assessed on the sale of the of the said goods was deducted from his eligibility certificate. Accordingly, it amounts the payment of tax by way of adjustment. Section 4-BB 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 view of the above discussion, the questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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