- (1.) Heard Sri R.R. Agrawal learned Counsel for the Petitioner and Sri U.C. Pandey, learned standing counsel. The Petitioner is carrying on the business of bajaj scooter, motorcycle and other spare parts.
(2.) It appears that during the period of warranty of the vehicle, on the claim of the buyer of the vehicle, the Petitioner supplied certain parts. The amount of the said parts had been received from the company. The claim of the Petitioner was that the amount received from the company in respect of the part used for the repair of the vehicle during warranty period was not the part of the taxable turnover and not liable to tax. It appears that on the basis of the decision of the apex court in the case of Mohd. Ekram Khan & Sons v. Commissioner of Trade Tax, 2004 136 STC 515, proceedings under Section 21 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as, "the Act") have been initiated for the assessment years 1999-2000 to 2002-03 and thereafter reassessment orders have been passed. The assessing authority has levied the tax on the amount received from the company in respect of the warranty claim. In the assessment order the assessed tax has been treated as admitted tax and the interest has been demanded for the assessment year 1999-2000 from June 1, 1999 till the deposit of the tax, for the assessment year 2000-2001 from June 1, 2000 till the deposit of the amount; for the assessment year 2001-2002, from October 1, 2001 and for the assessment year 2002-03 from October 1, 2002.
(3.) For the assessment year 2003-04, the assessing authority has passed regular assessment order under Rule 41(8) and the amount received towards the warranty claim has been assessed to tax and also demanded interest under Section 8(1) with effect from June 1, 2003.;