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Commissioner Of Sales Tax vs Brij Lal Mahendra Kumar Pipal Shah

High Court Of Judicature at Allahabad|16 December, 1977

JUDGMENT / ORDER

JUDGMENT H.N. Seth, J.
1. For the assessment year 1963-64 the Additional Revising Authority, Sales Tax, Allahabad, has stated the case on the following question for the opinion of this Court:
Whether, on the facts and in the circumstances of the case, the learned Additional Revising Authority was justified in holding gur badda as gur and not molasses ?
2. In the relevant assessment year, the assessee M/s. Brij Lal Mahendra Kumar Pipal Shah carried on the business of manufacturing and sale of khandsari, gur badda, molasses, etc. In respect of gur badda the taxable turnover was assessed at Rs. 20,000 and the tax was charged at the rate of 3 per cent. In appeal the appellate authority held that gur badda was taxable at 2 per cent as gur and not at 3 per cent as molasses. The decision of the appellate authority has been upheld by the Judge (Revisions), Sales Tax.
3.The contention of the learned counsel for the Commissioner of Sales Tax is that gur badda was a commodity similar to gur lauta. It has been held by this Court that gur lauta is molasses. It is, therefore, contended that like molasses, gur badda is also taxable at 3 per cent.
4. In the case of Commissioner of Sales Tax, U. P. v. Prem Chand Jia Lal Charthawala 1974 U.P.T.C. 276, it has been clearly laid down that gur badda is a commodity different from molasses and as such it could not be taxed at 3 per cent. Main controversy raised in this reference is as to whether gur -badda is taxable at 3 per cent or 2 per cent. It is admitted by the department that in case it is considered that gur badda is not molasses, the commodity in question was in the relevant year, taxable at 2 per cent only. Accordingly, we refrain from going into the question as to whether gur badda is the same thing as gur.
5. After hearing counsel for the Commissioner of Sales Tax we answer the question referred to us as follows :
On the facts and in the circumstances of the case, the learned Additional Revising Authority was justified in holding that gur badda was not molasses.
7. The result of our answer would be that the assessee's turnover of gur badda would be taxed at 2 per cent only and not at 3 per cent. As no one has appeared on behalf of the assessee we make no order as to costs. Counsel's fee is assessed at Rs. 200.
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Title

Commissioner Of Sales Tax vs Brij Lal Mahendra Kumar Pipal Shah

Court

High Court Of Judicature at Allahabad

JudgmentDate
16 December, 1977
Judges
  • H Seth
  • D Nandan