S. B. Sinha J. - (1.) Leave granted.
(2.) Whether the adjustment of price of molasses from the amount of licence fee would amount to sale within the meaning of Uttar Pradesh Trade Tax Act, 1948 (the Act, for short, is the question involved in this appeal which arises out of the judgment and order dated 21-5-2004 passed by the High Court of Judicature at Allahabad in Trade Tax Revision No. 1866 of 1993.
(3.) The basic facts are not in dispute. One M/s. Swaroop Vegetables Products Industries Ltd. (the Company, for short) owned and possessed a sugar mill known as Sir Shadilal Sugar and General Mills situated at Mansurpur District, Muzaffarnagar in U.P. A Deed of Licence was executed by the said Company in favour of the appellant herein on 3-9-1987; pursuant whereto and in furtherance whereof, the appellant herein executed a performance guarantee to ensure performance of the said Deed of Licence dated 3-9-1987. In terms of the said agreement dated 3-9-1987, a performance guarantee was executed by the appellant herein, wherein it was agreed to by and between the parties that a major part of the licence fee would be paid in the shape of molasses. The contention of the appellant all along was and still is that it is in lieu of the consideration for the right to use the said sugar mill, i.e., the licence fee. The appellant was required to handover molasses to the said Company for an amount equivalent to the licence fee and such a transaction would not constitute a sale of molasses so as to attract the provisions of the Act.;