9911796707
TMI Blog2016 (3) TMI 1478X X X X Extracts X X X X X X X X Extracts X X X X ..... On the purchase of sugarcane, the tax is payable by such Sugar Mills under the provisions of U.P. Sugarcane Purchase Tax Act, 1961. In order to ensure that this tax is paid faithfully on the purchase of sugarcane, Section 3-A in the said Act mandates the Sugar Mills not to remove any sugar produced in the factory either for consumption or for sale or manufacture of any other commodity in or outside the factory, unless the owner has paid towards the tax levied Under Section 3 of the said Act. Proviso to this Section 3-A, however, gives little indulgence to the owners of these factories and provide that sugar may be deposited in any godown or other space for storage approved by the Assessing Authority without payment of any sum. However, as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnished, vide its application dated 10.05.1997, the details of the sugar which was stored in the aforesaid Godown outside the factory premises. It was emphasized that whenever sugar bags were removed from the said Godown, tax which is payable Under Section 3 of the Act was deposited. After verifying the aforesaid bags and the stand of the Appellant that it had paid the tax before removal of the sugar from the godown where the same was stored, the Assessing Authority, who was at the material time Collector, granted above order dated 07.06.1997 giving tax ex-post facto approval. In the said order the Assessing Authority also warned the Appellant to take such permission in time, in future. It appears that the tax assessment, was thereafter as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a view that "prior approval" was required and since no such prior approval was taken ex-post facto approval was of no consequence and could not be taken advantage by the Appellant. 3. From the aforesaid facts, what emerges is that there is no evasion of any tax. The claim of the Appellant that it had paid the tax at the time of removal of the bags from the Godown is not disputed by the Assessing Authority. In fact, as mentioned above, while granting ex-post facto approval, the Assessing Authority had satisfied itself about the due payment of the entire tax at the time of removal of the bags and that there was no evasion of tax. In these circumstances, we have to consider as to whether ex-post facto approval amount to sufficient complian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In Black's Law Dictionary (Fifth Edition), the word "approval" has been explained thus: Approval - The act of confirming, ratifying, assenting, sanctioning, or consenting to some act or thing done by another. Hence, approval to an act or decision can also be subsequent to the act or decision. 12. In U.P. Avas Evam Vikas Parishad (supra), this Court made the distinction between permission, prior approval and approval. Para 6 of the judgment is quoted hereinbelow: (SCC pp. 458-59) 6. This Court in Life Insurance Corpn. of India v. Escorts Ltd. (1986) 1 SCC 264, considering the distinction between "special permission" and "general permission", previous approval" or "prior approval" in para 63 held that: (SCC p. 313) 63.....we are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Government", the Executive Council of the University could not determine the terms and conditions of service of the non-teaching staff without first obtaining the approval of the State Government. But since the words used are "with the approval of the State Government", the Executive Council of the University could determine the terms and conditions of service of the non-teaching staff and obtain the approval of the State Government subsequently and in case the State Government did not grant approval subsequently, any action taken on the basis of the decision of the Executive Council of the University would be invalid and not otherwise. 4. As is clear from the above, the dictionary meaning of the word 'approval' includes ratifyin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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