COMMISSIONER, COMMERCIAL TAX Vs. MAAN SHAKUMBHARI GRAMODYOG SANSTHAN
LAWS(UTN)-2013-7-41
HIGH COURT OF UTTARAKHAND
Decided on July 11,2013

COMMISSIONER, COMMERCIAL TAX Appellant
VERSUS
Maan Shakumbhari Gramodyog Sansthan Respondents

JUDGEMENT

- (1.) These two revision applications are in relation to selfsame assessee for two different assessment years. The facts and circumstances of the case are almost identical and, accordingly, we have taken up for hearing these two revision applications together. The facts, to which there appears to be no dispute, are that the assessee was a registered trade tax dealer. Under its registration, it was entitled to deal with doors, windows, door frames, window frames and furniture. It was accorded a concession to the effect that no trade tax would be leviable on the items, in respect whereof, it is a registered dealer provided they are manufactured out of timbers imported. Two surveys were conducted. In course thereof, it transpired that the imported timbers are not being used for manufacturing the items for which the assessee is a registered dealer at the registered place of business of the assessee. When this was brought to the notice of the assessing officer, it issued a notice to the assessee calling upon it why the exemption shall not be refused to it and why it shall not be assessed as a dealer not entitled to exemption. The assessee represented to the assessing officer that it is utilizing the imported timbers in the manufacture of the items, which the assessee is selling but the manufacturing is not being done at the registered office of the assessee, instead those are being done by the labourers on piece rate basis. Inasmuch as, the manufacturing activity was not carried out at the registered address of the assessee, the assessing officer felt that the imported timbers are being sold by the assessee as such and not by manufacturing the same into the products which the assessee was selling. Before coming to the said conclusion, it was obligatory on the part of the assessing officer to ascertain, whether, under the law, in terms whereof the exemption was given to the assessee, or in the order giving exemption to the assessee, it was a condition that the imported timbers are required to be utilized in the manufacturing of the end-products at the registered office of the registered dealer. That having not been done, the assessing officer, merely because the manufacturing activity was not carried out at the registered office of the dealer, could not come to the conclusion that the assessee is selling the timbers without utilizing the same for manufacturing the items the assessee is entitled to deal with. The assessee, though failed against the assessment order before the first appellate authority, but succeeded before the Tribunal. The Tribunal while dealing with the matter posed certain questions, which according to the learned Chief Standing Counsel were questions of fact. For reasons recorded in the order of the Tribunal, the Tribunal has refused to accept the contention that the timbers were not being used for manufacture of those items as was the finding of the assessing officer. Apropos that, learned Chief Standing Counsel submitted before us that the matter ought to have been remitted. However, having regard to the order of the assessing officer, it is absolutely clear that it was not the case of the assessing officer that the assessee was not dealing with the items with which he was entitled to deal. He felt that since imported timbers were not being used in manufacturing activity at the registered place of business of the assessee, the imported timbers have not been utilized for manufacturing those items, which are being dealt with by the assessee, instead the imported timbers have been sold as such. The fact remains, as aforesaid, in order to come to the said conclusion, it was obligatory on the part of the assessing officer to ascertain, whether, in law or on the basis of the grant, the assessee was required to convert the imported timbers at his registered address into the products which the assessee was entitled to deal with. That having not been done, question of remitting the matter in the instant case does not arise. We, accordingly, refuse to interfere with the revision applications. The same are dismissed.;


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