JUDGMENT Rajes Kumar, J.
1. The present revision under Section 11 of U. P. Trade Tax Act (hereinafter referred to as 'Act') is directed against the order of Tribunal dated 26.3.1997 relating to assessment year 1989-90.
2. The brief facts of the case are that during the year under consideration, opp. party purchased Iron Scrap for Rs. 5,12,205/- from M/S Sumit Industrial Corporation, 29 Ganesh Chandra Avenue, Calcutta and sold the same in the same form and condition in the course of interstate for Rs. 6,11,203.75p against Form -C. Opp. party claimed that since the goods have been sold in the same form and condition in view of Notification No. ST-3618/X-900 (2)-69 dated 01.7.1969, it was liable to tax @ 1%. Assessing Authority issued Show-cause-notice stating therein that the tax on the purchases of goods have not been paid, therefore, sale was liable to tax @ 4%. Opposite party filed reply to the Show-cause-notice and a Certificate of M/S Sumit Industrial Corporation, 29 Ganesh Chandra Avenue, Calcutta, was filed in which, it was stated that 4% lax was paid to S/S Indian Steel & Wire Product Limited from whom they have purchased the said Iron scrap. Assessing Authority however, not accepted the claim of opposite party and levied tax @ 4%. First appeal filed by the dealer was allowed and the claim of tax @ 1% on the aforesaid transaction has been accepted. Appeal filed by the Commissioner of Trade Tax had been rejected.
3. Heard Counsel for the parties.
4. Learned Standing Counsel submitted that the under the aforesaid Notification, tax should be paid on the sale made in the course of inter State trade or commerce which resulted in the import of goods into the State of U. P. He submitted that admittedly, goods have not been subjected to tax under the Central Sales Tax Act on the sale by M/S Sumit Industrial Corporation, 29 Ganesh Chandra Avenue, Calcutta, to the dealer-opposite party which resulted import of goods into the State of U. P. He submitted that the tax paid by M/S Sumit Industrial Corporation, 29 Ganesh Chandra Avenue, Calcutta, to S/S Indian Steel & Wire Product Limited from whom they have purchased goods was rot relevant for the purposes of Notification dated 01.7.1969. Learned Counsel for the opp. party relies upon the order of First Appellate Authority and the Tribunal.
5. I have perused the order of Tribunal and the authorities below. I find substance in the argument of learned Standing Counsel. Notification No. ST-3618/X-900 (2)-69 dated 01.7.1969 reads as follows:-
Whereas, the State Government is satisfied that it is necessary so to do in the public interest;
Now, therefore, in exercise of the powers under Sub-section (5) of Section 8 of the Central Sales Tax Act, 1956 (Act No. 74 of 1956), read with Section 21 of the General Clauses Act, 1897 (Act No. 10 of 1897), and in supersession of Notification No. ST-3946/X-960 (9)-69 dated August 26, 1956, the Governor is pleased to direct that with effect from July, I, 1969, the tux payable under Sub-section (1) of the said section by any dealer having his place of business in Uttar Pradesh in respect of the sale by him from any such place of business, in the course of inter State trade or commerce of any goods to which the said Sub-section (1) applies, shall subject to the conditions hereinafter specified, he calculated at the rate of one percent.
CONDITIONS (1) The sales are made to a registered dealer having his place of business outside Uttar Pradesh.
(2) The sales relate to goods which are proved to the satisfaction of the appropriate sales tax authority to have been imported into Uttar Pradesh and are exported from Uttar Pradesh without any change in form or identity and have already been subjected to a tax under the Central Sales Tax Act, 1956, in respect of a sale in the course of inter State trade or commerce which resulted in the import of the goods into the State of Uttar Pradesh.
6. The notification contemplates three conditions (i) Sales to registered dealer, (ii) Sales of goods without any change in Form or identity (iii) have already been subjected to a tax under the Central Sales Tax in respect of a sale in the course of inter State trade or commence which resulted in the import of the goods into the State of Uttar Pradesh. Therefore, goods should be subjected to tax on the sale made by M/S Sumit Industrial Corporation, 29 Ganesh Chandra Avenue, Calcutta, to the opposite party which resulted import of the goods into the State of U. P. Admittedly, goods have not been subjected to tax on the sale made by M/S Sumit Industrial Corporation, 29 Ganesh Chandra Avenue, Calcutta, to the opp. party dealer, Tax paid earlier on the sales made by S/S Indian Steel & Wire Product Limited to M/S Sumit Industrial Corporation, 29 Ganesh Chandra Avenue, Calcutta, is of no relevance. In the circumstances, First Appellate Authority as well as Tribunal have erred in allowing the benefit of the aforesaid Notification dated 01.7.1969 and accepting the claim of opposite party for tax @ 1%.
7. In the result, revision is allowed. Order of Tribunal and the First Appellate Authority are set aside and the order of Assessing Authority is restored.