TARUN CHATTERJEE, J. - (1.) CHALLENGE in this Appeal is to the judgment passed by the Division Bench of the High Court of Judicature at Allahabad.
(2.) DEEPAK Fertilizers and Petrochemical Corporation Ltd. (Respondent herein) is a Company registered under the Indian Companies Act, 1956 which is engaged in the business of manufacture and sale of Phosphatic Fertilizers and Allied Chemicals the composition of which is 23:23:0 i.e. (Nitrogen, Phosphorus and Potassium) in the State of U.P. and is registered under the UP Trade Tax Act (hereinafter called the 'Act') and the Central Sales Tax Act. The State of UP (the Appellants herein) issued notification dated 2nd November, 1994, which provided for exemption from payment of tax on the sale of Potassium Phosphatic Fertilizers for a specified period. This Notification reads as under: "In the exercise of the powers under Clause A of Section 4 read that Section 25 of the U. P. Trade Tax Act ( U. P. Act No. 15 of 1948), the Governor is pleased to direct that from 1.11.1994 to 31.3.1995 no tax would be payable under the aforesaid Act on the sale of Potassium Phosphatic Fertilizers." A reading of this notification indicates that no tax would be payable for the period from 1st November 1994 to 31st March 1995 under the Act on the sale of Potassium Phosphatic Fertilizers.
(3.) SUBSEQUENTLY a notification dated 10th April, 1995 was issued which superseded the notification dated 2nd November, 1994. This notification runs as under: "In exercise of powers under Section 25 read with Clause 21 of sub-section A of Section 4 of U. P. Trade Tax Act 1948 (U.P. Act No. XV of 1948) and Section 21 of U. P. General Clauses Act, 1904 (U.P. Act No. 1 of 1904) superseding the Government Notification No. T. T.- 2 - 3714/11-9( 856)/92-U. P. Act -15 -48 Order- 94 dated 2nd November 1994 (S. No. 235), the Governor is pleased to direct that during the period 1st November 1994 ending with 31st March 1995 no tax will be payable under the aforesaid U. P. Act No. XV of 1948 on the following Chemical Fertilizers:- (i) D.A.P. (ii) M.O.P. (iii) Super Phosphate (iv) N.P.K. 12:32:16 (v) N.P.K. 15:15:15 (vi) N.P.K. 20:20:0 (vii) N.P.K. 14:35:14" ;