(1.) Judgment and order dated 23.4.2007, rendered by the Commercial Tax Tribunal, Dehradun in Second Appeal No. 125/2006, pertaining to Assessment Year 2000-01, is under challenge in this revision.
(2.) Relevant facts of the case are that respondent/assessee Tehri Hydro Development Corporation (for short, the Corporation), a joint venture of State Government and Central Government, is engaged in production of electricity as well as in development of hydroelectric plants. The Corporation approached the concerned Tax Assessing Officer for recognition in terms of Section 4-B of the U.P. Trade Tax Act, 1948 (for short, the Act) and, accordingly, sought exemption in tax on the articles, equipments, accessories, machineries, plants, etc. purchased in connection with production of electricity, which included construction of dams, tunnels and power houses. List of such articles was supplied by the Corporation to the Assessing Officer. The Assessing Officer allowed the benefit of Section 4-B of the Act only in respect of those articles which can be used directly in production of electricity, but did not give such benefit on the articles mentioned herein below on the ground that the same are not used directly in production of electricity, and, accordingly, levied tax on those articles.
(1) All types of cement, bitumen, GC Sheets, asbestos sheets, explosives, detonators,
(2) Loader, dodgers, excavators, sprinklers, dumpers, graders, cranes, muck-dumpers, shawal doglines, back hoges, conversion kits and their spare parts, packers road rollers and their spare parts, electric win chase, sheet piling plant and well shiking equipments with spare parts, tyres, tubes and flaps (meant to be used in heavy machine).
(3) Paints and varnishes, glasses of various thickness and sizes, pipe fitting, delivery pipes, tools, wires of different sizes, hardware.
(4) Petrol, petroleum product, diesel oil and lubricants.
(5) Gauge metres, electrical goods (has been granted but not on their spare parts) motors, battery, electrodes, welding machine and their spare parts, associates equipments of generator, electrical testing equipments.
(6) Testing equipments of all kinds and their spare parts.
(7) Ramraj geru, sand, lime, bajri, marble, chips, moram, gitty, kankar, stoneblast, stone and opticals of stones excepts glazed stones.
(8) Copper sheet, rubber sheet, bituminous joint filler and bitumen products, tarcoal, etc., tiles, glasses, doors and windows of aluminum and iron (for power house), wingers, batteries, bolts, etc.
(3.) The Corporation claimed that though the above items were not used directly for the generation of the electricity, but the same are essential requirements in the manufacturing of the electric plants and in the construction of dams, tunnels and powerhouses as well as the linked roads. The Assessing Officer did not accede to this argument and he levied the tax stating that the same is justified in accordance with the provisions contained under Section 4-B(2) of the Act.;