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TMI Blog2020 (4) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... h seeds is taxable within the State of U.P. It has been admitted that the farmers are paid 90 percent of the price at the stage when the said transaction takes place and the remaining amount is paid depending upon the quality of certificate issued by the unit at Kota - The Tribunal has rightly held that this aspect of the transaction culminated in the State of U.P. wherein the procurement of the said seeds takes place from the farmers by the assessee/through their contractor is an intra-State sale which is totally covered by the provisions of Trade Tax Act. There is no infirmity with the order of the Tribunal which has delved into all the aspects including various contracts and determined that sale of seeds by farmers is taxable in Uttar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of its engineers by farmers/growers. 4. The assessing company gives the foundation seeds to the farmers and it is grown under the guidance and supervision of its engineers. Fertilizer, pesticides etc. are given to the farmers as per the direction of its engineers. When the crop has fully grown and ripe, the hybrid seed so produced is dispatched to the Kota Plant for its checking/testing of gradation, germination and quality, field test and then the value of the seed is decided. The hybrid seed so produced is sent from U.P. to Kota plant which is an inter -State transaction and is not taxable in the State of U.P. 5. In the present case which pertains to assessment year 2007-08 the assessing authority by means of his order dated 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rement seeds from farmers and sending it to Kota and they become taxable paddy after certification and, therefore, the action of the revenue in taxing such transaction by the Assessing Authority is illegal and arbitrary in as much as the said transaction could not have been taxed by the State of U. P. being inter State transaction and, therefore, the entire proceedings deserves to be set aside. 9. Sri Rohit Nandan Shukla, counsel for the Revenue, on the other hand, submits that as per various agreements entered into between the petitioner and the contractors engaged by them which was entered at Agra on 1st January, 2004, indicates that they had engaged such contractors to procure paddy/seeds/grains from the farmers and after the said pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the farmers; they supply technical knowhow, fertilizers etc. and under the guidance of engineers seeds are grown. Subsequently, high yielding seeds are purchased by the assessee through the contractors as per the agreement annexed in the petition and thereafter such procurement are sent to their plant at Kota where they are further tested and certified and then sold to farmers all over the country. 14. To resolve the controversy in question it is relevant to go through the agreement entered into between the assessee and the contractor. As per clause 6 of the said agreement the assessee was to procure seeds produced by growers through contractor and the contractor was responsible for delivering the seeds produced by the growers as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h has delved into all the aspects including various contracts and determined that sale of seeds by farmers is taxable in Uttar Pradesh. 17. No other fact or argument was placed before this Court which could persuade this Court for interfering with the order passed by the Tribunal. Needless to say that the assessing authority, the first appellate authority and the Tribunal have recorded concurrent findings of fact. There is no material on record which can lead this Court to take a different view other than taken by them. There is no reason to interfere with the same. 18. The questions of law are answered accordingly. 19. In the light of above, the revision lacks merits and is hereby dismissed. - - TaxTMI - TMITax - CST, VAT & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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