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Commissioner of Sales Tax Vs. Brij Lal Mahendra Kumar Pipal Shah. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtAllahabad High Court
Decided On
Case NumberMisc. S.T.R. No. 52 of 73
Reported in(1978)7CTR(All)63
AppellantCommissioner of Sales Tax
RespondentBrij Lal Mahendra Kumar Pipal Shah.
Cases ReferredCommissioner of Sales Tax U.P. vs. Messrs. Prem Chand Jia Lal Charthwala
Excerpt:
- - it is therefore contended that like molasses, gur badda is also taxable at 3%. 4. in the case of commissioner of sales tax u. prem chand jia lal charthwala, 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%. main controversy raised in this reference is as to whether gur badda is taxable at 3% or 2%. 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% only......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%. in appeal the appellate authority held that gur badda was taxable at 2% as gur and not at 3% as molasses. the decision of the revising 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%.4. in the case of commissioner of sales tax u.p. vs. messrs. prem chand jia lal charthwala, it.....
Judgment:

Seth, J. - 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%. In appeal the Appellate Authority held that Gur Badda was taxable at 2% as Gur and not at 3% as molasses. The decision of the revising 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%.

4. In the case of Commissioner of Sales Tax U.P. vs. Messrs. Prem Chand Jia Lal Charthwala, 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%. Main controversy raised in this reference is as to whether Gur Badda is taxable at 3% or 2%. 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% 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 :-

6. 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 assessees turnover of Gur Badda would be taxed at 2% only and not at 3 per cent. As no one has appeared on behalf of the assessee we make no order as to costs. Counsels fee is assessed at Rs. 200/-.


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