- (1.) Heard learned Counsel for the assessee and learned standing counsel, Sri B. K. Pandey for the respondent-State.
(2.) This revision has been filed by the assessee under Section 11 of the U. P. Trade Tax Act, 1948 being aggrieved by the order of the Tribunal dated October 5, 2006 for the assessment year 2002-03. The questions of law referred to are hereunder: (1) Whether in view of the finding of fact recorded by the assessing authority which has been confirmed by the Tribunal that entire basmati rice manufactured by the applicant, for which recognition certificate was granted, have been sold in the course of export and rice so manufactured has not been sold otherwise, the Tribunal was not justified in confirming imposition of tax on the purchase of paddy alleged to have been used in obtaining broken rice during process of manufacture of rice sold within the State of U. P. in the course of inter-State sale ? (2) Whether in view of the facts that entire rice manufactured out of paddy having admittedly been sold in the course of export, no tax can be legally imposed on the purchase merely because some waste product and by-products obtained during the process of manufacture of rice, have been sold either in the State of U. P. or in the inter-State trade and commerce ? (3) Whether no rice mill is established for manufacture of by-products which included broken rice, etc., and the recognition certificate having also not been granted for manufacture of by-products, namely, broken rice, the Tribunal was not justified in confirming imposition of tax on the alleged purchases of paddy which is said have been sold in connection of the broken rice obtained during manufacturing process of rice ?
(3.) The facts of the case are that the assessee is a public limited company, which is engaged in the manufacture of basmati rice. The assessee has been granted a recognition certificate under Section 4B(2) of the U. P. Trade Tax Act. The assessee is claiming the benefit of Notification No. 289 dated February 12, 1999, which has been issued by the State under Section 4B(2) of the U. P. Trade Tax Act. The notification provides that no tax shall be payable either on the purchase of raw material or on the sale of finished goods, i.e., the notified goods if the same are being exported outside the country.;