- (1.) We have heard Shri Bharat Ji Agrawal, senior advocate assisted by Shri Piyush Agrawal for the petitioner. Shri S. P. Kesarwani, Additional Chief Standing Counsel appears for the respondents. The petitioner is a public limited company engaged in the manufacture of caustic soda, chemicals, pesticides and other formulations, for which the petitioner requires electricity and for that purpose it has established a captive thermal power plant. The electricity generated in the captive power plant at Renukoot is entirely consumed in the manufacturing process. Ordinarily the trade tax is paid on the purchase of coal as one of the declared goods, at the rate of four percent. The petitioner, as manufacturer has been granted a recognition certificate under section 4B(2) of the U.P. Trade Tax Act, as manufacturer of caustic soda, chemicals, pesticides and formulations, which entitles it to purchase coal, as one of the notified goods, a: the rate of two percent, to be collected and deposited by the seller.
(2.) A letter was written by the Deputy Commissioner, Commercial Tax, Sonbhadra in June 2003, to NCL, Bina/Kakari/Kharia, Duddhichua, Distt. Sonbhadra, directing it, that in view of the amendments made in the Trade Tax Act under section 4B on May 9, 2003, the seller should realise four percent as trade tax and to deposit the same with the Trade Tax Department. The NCL was reminded that in the meeting dated June 17, 2003, it was informed and that since after May 2003, the trade tax be deposited on form No. 4 at four percent.
(3.) By this writ petition the petitioner has prayed for writ of certiorari to quash the communication dated 2/3rd September, 2003 issued by the NCL in response to the communication issued by the Deputy Commissioner, Commercial Tax and has also prayed for direction to prohibit respondent No. 1 from charging any tax in excess of two percent on the purchase of coal from respondent No. 1 against form IIIB.;