JUDGMENT Rajes Kumar, J.
1. These two revisions under Section 11 of U.P. Sales Tax Act (hereinafter referred to as "Act" are directed against the order of Tribunal dated 15.12.1992 for the assessment years 1984-85 under the U.P. Sales Tax Act and under the Central Sales Tax Act arising from the proceeding under Section 21 of the Act.
2. Applicant was involved in the manufacturing poultry feed and cattle feed. It appears that the applicant had purchased D Oiled Cakes during the year under consideration and claimed exemption on such purchases. Assessing authority granted the exemption on the purchase of D Oiled Cakes appears to be treating it as cattle fodder under the Notification No. St-II-2994/X-6(7)-73, dated 03.04.1975. Proceedings under Section 21 of the Act were initiated on the ground that during the year under consideration, there was a specific notification for D Oiled Cakes No. ST-II-5787/X-10(1)/80-U.P. Act 15/48-Order-81, dated 07.09.1981, which levis tax @ 4% at the point of first purchase. Assessing authority levied the tax on the purchases of D Oiled cake and also treated the tax levied as admitted tax and demanded interest under Section 8(1) of the Act. First appeals filed by the applicant were rejected. Applicant filed second appeals before the Tribunal, which were also rejected.
3. Heard learned counsel for the parties.
4. Following questions of law have been raised in the present revision:
"1. Whether on the facts and circumstances of the case the Tribunal was justified in law in upholding imposition of tax on De-oiled Cake, when De-oiled Cake is nothing else but the Cattle Fodder as held by the Hon'ble Allahabad High Court in the case of Umrao Industrial Corporation Pvt. Ltd. v. Sales Tax Officer reported in 1974 Vol. 33, S.T. Cases page 343 and it having not been specifically excluded from the Notification No. 1994 dt. 3.4.1975 ?
2. whether on the facts and circumstances of the case even assuming without admitting that there is any liability for payment of tax on the purchase of De-oiled Cake and having bonafide disputing its liability for payment of tax, the imposition on De-oiled Cake cannot be said to be tax on the applicant so as to warrant levy of interest under Section 8(1) of the U.P.S.T. Act ?"
Before dealing with the case it would be beneficial to refer both the notifications dated 03.04.1975 and 07.09.1981:
Notification No. ST-11-2994/X-6(70-73, dated 034.04.1975 In exercise of the powers under Section 4 of the U.P. Sales Tax Act, 1948 (U.P. Act No. XV of 1948), read with Section 21 of the U.P. General Clauses Act, 1904 (U.P. Act No. 1 of 1904), the Governor is pleased to make, with effect from April 5, 1975, the following amendment in Government Notification No. ST-911/X, dated March 31st, 1956, as amended from time to time.
AMENDMENT In the aforesaid notification, in List II for the existing entry against Serial No. 3, the following entry shall be substitutes:-
"Cattle fodder including green fodder, chuni, bhusi chhilka, chokar, and gawar, but not including khali (oil-cake), rice polish, rice bran or rice husk".
Notification No. ST-II-5787/X-10(1)/80-U.P. Act 15/48-Order-81, dated 07-09-1981 In exercise of the powers under clause (b) of Sub-section (1) of Section 3-D of the U.P. Sales Tax act, 1948 (U.P. Act No. XV of 1948), read with Section 21 of the U.P. Generals Clause Act, 1904 (U.P. act No. 1 of 1904) and in suprerssion of all previous notifications issued under Sub-section (1) of Section 3-D of the said Act as it stod before it stood before its amendment by the U.P. Sales Tax (Amendment and Validation) Ordinance, 1981, (U.P. Ordinance No. 12 of 1981), the Governor is pleased to order that, with effect from September, 7, 1981, the turn over of first purchase in respect of the goods mentioned in column 2 of the list below shall be liable to tax at the rate specified against each in column 3 thereof:
5. There is no disputes that the applicant had purchased D-oiled Cakes and used in the manufacturing of cattle feed. Notification dated 07.09.1981 taxed "Oil Cake including deoiled cake" at the point of first purchase was applicable relating to the taxability of D-oiled cake. There is no ambiguity in this regard. Perusal of the notification dated 03.04.1975 shows that it was not relevant to the taxability of D-oiled cake. D-oiled cake was not included in entry "cattle Fodder". Therefore, the claim of the application about the non-taxability on the purchases of D-oiled cake, on the existence of notification dated 07.09.1981 was abinitio wrong and erroneous. Assessing authority was misled and exempted the turn over in the original assessment proceeding. In the circumstances, I am of the view that purchase of D-oiled cake has been rightly assessed to tax at the point of purchase under the notification dated07.09.1981. Learned counsel for the applicant submitted that since at no stage the liability of tax admitted on the purchases of D-oiled cake and all along disputed at every stage, the tax levied on the purchases of D-oiled cake can not be treated as admitted tax and the interest under Section 8(1) of the Act can not be demanded. I do not agree with the argument of the learned counsel for the applicant. Relevant notification for the levy of tax on the purchase of D-oiled cake was dated 07.09.1981 and there was no ambiguity in this regard. Applicant had wrongly claimed the exemption on the purchase of D-oiled cake under the notification dated 03.04.1975, which was not all relevant. Therefore, the claim of the exemption was abinitio wrong which has led in granting the exemption by the assessing authority. Therefore, it is not a case raising bonafide despatch. Provisions of Section 8(1) of the Act is therefore applicable and the demand of interest under Section 8(1) of the Act is upheld.
In the result, both the revisions fail and are accordingly, dismissed.