Arijit Pasayat, J. - (1.) These two appeals relate to a common judgment rendered by a learned single Judge of the Allahabad High Court. The appellant (hereinafter referred to as the assessee) was a dealer registered under the Uttar Pradesh Trade Tax Act, 1948 (hereinafter referred to as the Act), for the relevant assessment years i.e. 1990-91 and 1996-97. The only question involved in these appeals is whether the amount received by the assessee for supply of parts to the customers as a part of the warranty agreement was liable to tax. The assessee was an agent of M/s. Mahindra and Mahindra (hereinafter referred to as the manufacturer). The Manufacturer had warranty agreement with the purchasers of vehicles (hereinafter referred to as the customers) to replace defective parts during the warranty period. As found by the taxing authorities and the High Court, the manufacturer made payment for certain price as the parts were supplied by the assessee to the customers. Credit notes were issued by the manufacturer to the assessee in respect of the price of the parts supplied to the customers. The assessing officer was of the view that the payments received through credit notes amounted to a sale in terms of Section 2(h) of the Act. Said provision, so far as relevant reads as follows :"(h) Sale with its grammatical variations and cognate expressions, means any transfer of property in goods (otherwise than by way of a mortgage, hypothecation, charge or pledge) for cash or deferred payment or other valuable consideration and includes-"
(2.) Accordingly tax was levied for the two assessment years in question.
(3.) The orders of assessment were questioned before the Commissioner (Appeal), Varanasi who upheld the assessments by common order dated 20-6-2001. The matter was carried in appeal before the Trade Tax Tribunal, Varanasi (in short Tribunal) by the assessee which placed reliance on certain decisions of different High Courts and came to hold that there was no sale. The matter was carried in revision by Revenue before the Allahabad High Court. The High Court set aside the order of the Tribunal and held that the transactions constituted sale attracting levy of tax.;