- (1.) Heard learned counsel for the parties. This trade tax revision has been filed by the assessee against the order of the Tribunal dated September 19, 2003, passed in Second Appeal No. 223 of 2003, whereby the appeal filed by the assessee has been dismissed.
(2.) Before this court a short legal contention has been raised, which is as follows: It is not disputed between the parties that under section 3F of the U. P. Trade Tax Act the net turnover referred to in sub-section (1) of section 3F has to be reduced by the amount representing the value of the goods transported under the works contract covered by sections 3, 4 and 5 of the Central Sales Tax Act, 1956 as would be apparent from reading of section 3F(2) (b) (i) itself.
(3.) The High Court in the case of Garg Photo Films, Agra v. Commissioner of Trade Tax,2005 UPTC 230 (para 7) has laid down as follows: 7. Section 3F(2) (b) (i) contemplates the deduction of the amount representing the value of goods covered by sections 3, 4 and 5 of the Central Sales Tax Act. If the works contract occasioned the movement of goods from outside the State of U.P. the use of such goods in the execution of works contract would be covered by section 3 of the Central Sales Tax Act. In the present case learned counsel for the applicant is not able to show that the movement of paper from outside the State of U.P. was occasioned by a particular works contract. In the present case, in the normal course of business photographic papers have been imported from outside the State of U.P. and kept as stock and whenever the papers were required for printing of photo films, the same was taken from the stock. In the circumstances, the case of the applicant is not covered under section 3 of the Central Sales Tax Act. In the case of Santosh and Company [1999] UPTC 823 there was a pre-existing contract and the goods have been imported from outside the State of U.P. for the use in the execution of such works contract, the movement of goods was occasioned by the works contract. On these facts, the court held that imported goods is not liable to tax under section 3F being in the course of inter-State under section 3 of the Central Sales Tax Act.;