- (1.)These appeals are directed against the judgment and order passed by the High Court of Judicature at Allahabad in Sales Tax Revision Nos. 1714 and 1715 of 1990, dated 14.02.2003. By the impugned judgment and order, the High Court has come to the conclusion that the transformers purchased by the Respondent-dealer would be eligible for concessional rate of tax for the assessment years in question and dismissed the revision petitions filed by the Revenue. The Respondent is a public limited company incorporated under the Companies Act, 1956 engaged in the business of manufacture and sale of Urea Fertilizer. It is a registered dealer under the U.P. Trade Tax Act, 1948 (for short 'the U.P. Act') and the Central Sales Tax Act, 1958 (for short 'the Act').
(2.)The Respondent-Assessee being a manufacturer was entitled to the benefit provided under Section 4B of the U.P. Act on the purchase of materials required for the use in the manufacture of goods. The Respondent-Assessee had filed Form No. 18 as required under Rule 25(2) of the U.P. Trade Tax Rules (for short "the Rules") for grant of certificate of recognition to purchase raw-material, fertilizers and component parts at the concessional rate of tax. The authority after considering the said application had issued the recognition certificate in Form No. 19 as envisaged under the Act and Rules, dated 04.11.1977.
(3.)The Assessee apart from other raw materials had purchased spare valves, cable, pump and transformer at concessional rate of tax for use in the manufacture of its final product, namely urea fertilizer.