- (1.) These appeals are preferred by the appellant/assessee questioning the validity and/or propriety of the judgment dated 16.01.2007 passed by the High Court of Judicature at Allahabad whereby the writ petitions preferred by the appellant have been dismissed. The said writ petitions were filed by the appellant challenging the order dated 17.11.2006 passed by the Deputy Commissioner, Trade Tax, Saharanpur under Rule 41(6) of the U.P. Trade Tax Rules by which purchase tax at the prescribed rate of 4% amounting to Rs. 2,33,00,663/- had been imposed upon the appellant along with interest @ 14% on the admitted purchase of wheat.
(2.) To state at the outset, the appellant herein wanted to avail the benefit of exemption Notification dated 29.08.2003 issued under Section 4B(1)(a-1) of the Uttar Pradesh Trade Tax Act, 1948 (hereinafter referred to as 'the Act') which plea of the appellant was rejected by the Deputy Commissioner, Trade Tax and the High Court has, as mentioned above, upheld the order of the Deputy Commissioner, Trade Tax while dismissing the writ petitions filed by the appellant. Few relevant facts which need to be noticed to decide the controversy are as follows: The appellant herein is the first purchaser of wheat from the farmers in the State of U.P. It supplies the wheat so purchased to certain Roller Flour Mills in the State of U.P. for conversion of the same to Atta and Maida. The period with which we are concerned is April, 2006 and May, 2006 during which the appellant had purchased wheat from those farmers and supplied the same for conversion into flour by grinding process to three flour mills. After conversion of wheat into flour it was taken back by the appellant from those flour mills for onward sale. It was the case of the appellant that it had been claiming exemption since 2004 for payment of purchase tax in respect of wheat in terms of Section 4B(1) (a-1) of the Act read with Notification dated 29.08.2003, both of which provide for such exemption in respect of goods that are "sold or supplied" by the first purchaser of the goods to such Roller Flour Mills. However, vide order dated 23.11.2006 passed by the Deputy Commissioner, this exemption was denied on the basis that the same was not available in case of supply of the wheat by the appellant to the Roller Flour Mills. Two show cause notices were issued by the Deputy Commissioner, Trade Tax and after considering reply thereupon and hearing the appellant, the demand of the show cause notices was confirmed. The orders passed by the Deputy Commissioner were challenged by filing two writ petitions which had been dismissed by the High Court by the impugned order.
(3.) Before adverting to the manner in which the High Court has decided the matter, we would like to reproduce the relevant provisions of the Act as well as exemption Notification dated 29.08.2003.;