- (1.) The assessee-dealer is a contractor registered in U. P. having one of its office outside the State of U. P. For the purposes of execution of works contracts it procures material both by purchase from within the State of U. P. and by purchasing and importing material from outside U. P. or by transferring material from its office situate outside U. P.
(2.) In the years in question, i.e., 1996-97 and 1997-98, the assessee transferred certain material from his office outside U. P. for the purposes of execution of works contracts in U. P., The assessing authority vide order dated September 30, 1999 imposed tax of Rs. 10,87,479 and Rs. 7,44,745, respectively by including the value of material so transferred from its office outside U. P. in the taxable turnover. On appeal before the Deputy Commissioner of Appeals, the matter was remanded to the assessing officer. The order of remand passed by the first appellate authority was challenged by the assessee as well as the Revenue before the Trade Tax Tribunal in second appeals. The Tribunal vide order dated September 6, 2002, considerably reduced the tax liability of the assessee holding that the value of goods used in the execution of works contract received from outside the State as stock transfer from outside U. P. office is exempt from tax under section 3F(2)(b)(i) of the U. P. Trade Tax Act, 1948.
(3.) The above order of the Tribunal has been assailed by the Revenue by means of the present revision and the following question of law has been raised : Whether, under the facts and circumstances of the case, the Trade Tax Tribunal was legally justified to hold that the goods received from outside the State as a result of stock transfer and used in execution of works contract are exempt from tax under the provisions of section 3F(2)(b) of the U. P. Trade Tax Act ?;