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TMI Blog2019 (12) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... s Automobiles Sterling and M/s Unique Motor, which are on record, show that tax has been levied and the tabulation, at the bottom of the assessment orders, itself reveals that the tax was deposited, which includes the tax levied on motor vehicle - the learned counsel for the revisionist has submitted that the assessment order were on record, but the Tribunal as well as the lower authorities have failed to get it verified from the respective Assessing Authorities. The matter is remanded to the Tribunal for reconsideration of the issues - revision allowed by way of remand. - Trade Tax Revision No. - 34 of 2018 - - - Dated:- 4-12-2019 - Piyush Agrawal, J. For the Revisionist : Mudit Agarwal For the Opposite Party : C.S.C. ORDER PIYUSH AGRAWAL, J. The present revision has been filed against the order dated 12.01.2018 passed by the Commercial Tax Tribunal, Bench - 3, Lucknow in Second Appeal No. 33 of 2011 for the assessment year 2007-08 (for the period from 01.04.2007 to 31.12.2007), by which the appeal of the revisionist has been dismissed. Heard Shri Jaideep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing. The revisionist entered into an agreement on 18.12.2007 with TMML, by which certain machineries were given for use in the factory premises. The Revenue has imposed tax under section 3-F of U.P. Trade Tax Act treating the same as transfer of right to use the goods for valuable consideration. It is further averred that without looking into the clauses of the agreement and the nature of contract, when the machinery was in its effective control, the Tribunal as well as the lower authorities have imposed the tax illegally. It is further averred that under section, 3AAA of the U.P. Trade Tax Act, 1948, the liability of tax on the motor vehicle is at the point of sale to the consumer and admittedly, the sale has been made by the revisionist to the registered dealers, but still tax has wrongly been imposed upon it. Even though the registered dealers had admitted their liability and deposited their tax, but still the Revenue has imposed tax which amounts to double taxation, which is not permissible under the Act. Learned senior counsel has submitted that the agreement dated 18.12.2007 specifically provides that there is no effective tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to manufacture of bus/bus bodies for TML and shall not use for any third party or for any purpose other than that mentioned in this agreement. 7. Rent:- TML will charge rent from TMML equal to Depreciation calculated under Companies Act, 1956 on Straight Line Method (Double shift basis). Any modification in the charges or in the basis in future will be mutually discussed and agreed between the parties. In addition to rent, TMML shall reimburse to TML taxes (including service tax), if any, payable on the rent. TML will raise its debit note for the rent and TMML will pay the amount within 7 days from the date of debit note. In the debit note, TML shall show the service tax or any other tax separately. 8. Inspection by TMML:- TML shall have a right at all reasonable time to enter in the said premises where the machinery / equipment under this Agreement is installed and inspect and / or test the machinery / equipment and observe the manner of its use. If at any time it is found that the machinery/ equipment is not used properly, TML shall have a right to instruct TMML about the same and TMML shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e judgement of this Court in the Commissioner, Trade Tax, U.P. Vs. M/s Jamuna Prakash Jaiswal (2008) 13 VST 403 and submits that in view of the observations made in the aforesaid cases, no tax under section 3-F can legally be imposed upon the revisionist. It is further submitted that whenever motor vehicles are sold, then under section 3AAA of the Trade Tax Act, tax can be imposed only at the point of sale to the consumer and admittedly, the goods have been sold by the revisionist to the registered dealers. The registered dealers have given Form 3-A prescribed under the Act. Two registered dealers could not submit the form and the tax was imposed upon them. He further submits that the two registered dealers, namely, M/s Automobiles Sterling and M/s Unique Motor, have deposited the tax. The said fact is evident from their assessment orders. It is further submitted that the averments made in paragraph no. 43 of the affidavit filed in support of the revision have not been denied by the State in paragraph no. 42 of the counter affidavit. It is further submitted that in view of the aforesaid fact, the tax imposed upon the sale of mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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