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Raj Kumar Sharawan Kumar Oil and Rice Mills Vs. Commissioner, Sales Tax - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtAllahabad High Court
Decided On
Case NumberSales Tax Revision No. 144 of 1980
Judge
Reported in[1983]53STC161(All)
AppellantRaj Kumar Sharawan Kumar Oil and Rice Mills
RespondentCommissioner, Sales Tax
Appellant AdvocateM.C. Gupta and ;S.K. Agarwal, Advs.
Respondent AdvocateStanding Counsel
DispositionPetition allowed
Excerpt:
- .....contention was that he should be given the benefit of reduced tax of rate at 13.83 percent of the total purchases of oil-seeds, at rs. 1,14,14,712.83. the assessee has been given the benefit of concessional rate of tax only at 13.8 per cent of the net purchases worth rs. 51,30,789.26 and on the remaining turnover he was taxed at the rate of 3 per cent.3. the assessee admittedly holds a recognition certificate under section 4-b(2) of the act. he is consequently entitled to the benefit of section 4-b(1)(a) of the act. he would, therefore, be entitled to the benefit of section 4-b(1)(a) of the act on the net total purchases of oil-seeds made by the assessee which are covered by the recognition certificate granted under section 4-b(1)(a) of the act.4. learned standing counsel urges that the.....
Judgment:

B.N. Sapru, J.

1. The only question in this revision filed by the assessee is as to what extent the assessee is entitled to the benefit of concessional rate under Section 4-B of the Act on his purchases of oil-seeds.

2. The assessee's contention was that he should be given the benefit of reduced tax of rate at 13.83 percent of the total purchases of oil-seeds, at Rs. 1,14,14,712.83. The assessee has been given the benefit of concessional rate of tax only at 13.8 per cent of the net purchases worth Rs. 51,30,789.26 and on the remaining turnover he was taxed at the rate of 3 per cent.

3. The assessee admittedly holds a recognition certificate under Section 4-B(2) of the Act. He is consequently entitled to the benefit of Section 4-B(1)(a) of the Act. He would, therefore, be entitled to the benefit of Section 4-B(1)(a) of the Act on the net total purchases of oil-seeds made by the assessee which are covered by the recognition certificate granted under Section 4-B(1)(a) of the Act.

4. Learned standing counsel urges that the assessee has committed a breach of the recognition certificate by effecting sales contrary to the requirements of law. If that be so, it would be open to the department to take action under the relevant provisions of law. That, however, does not mean that the assessee is not entitled to the benefit of Section 4-B(1)(a) of the Act.

5. In the result, the revision is allowed. The order of the Tribunal is partly set aside and it is declared that the assessee is entitled to the concessional rate of tax on his total purchase of oil-seeds in the proportion of 13.83 per cent. The papers will now go back in accordance with the provisions of Section 11(8) of the Act to pass appropriate orders. The assessee is entitled to his costs which I assess at Rs. 200.


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