- (1.)SINCE the question of law involved in these two appeals are common, the same are being disposed of by this common order. The Appellant/Assessee is a dealer registered under the Uttar Pradesh Sales Tax Act, 1948 (now renamed as the Uttar Pradesh Trade Tax Act, 1948) (for short, 'the Act') and is engaged in the business of cloth made of jute. In these two appeals we are concerned with the assessment years 1987 -88 and 1988 -89.
(2.)THE Appellant/Assessee had claimed exemption from payment of sales tax under the Act on the ground that he is a dealer in jute and canvass cloth and the benefit of the Notification issued by the State Government in exercise of its powers Under Section 4(a) of the Act should be made applicable to him.
(3.)THE Assessing Authority dismissed the claim made by the Appellant/Assessee and has imposed tax liability of Rs. 15,058/ - and Rs. 1,10,227.36/ - for the assessment years 1987 -88 and 1988 -89 respectively. The Appellant/Assessee aggrieved by the order passed by the Assessing Authority has preferred appeals before the First Appellate Authority. However, the First Appellate Authority had partly allowed the appeal filed by the Assessee and reduced the tax liability to Rs. 14,560.92/ - and Rs. 1,10,030.00/ - for the assessment years 1987 -88 and 1988 -89 respectively.
The Revenue being aggrieved by the orders passed by the First Appellate Authority had preferred second appeal before the Trade Tax Tribunal, Kanpur (for short, "the Tribunal"). The Tribunal after considering the contentions canvassed by the learned Counsels and examining the documents on record observed that the Appellant/Assessee purchased Canvas Cloth and sold the same as Canvas Cloth and thus allowed the exemption on sale of Canvas Cloth.