Satish Chandra, J. - (1.) ALL the revisions have been filed under section 11 of the U.P. Trade Tax Act, 1948 against the consolidated order dated November 9, 2009 passed by the Commercial Taxes Tribunal, Lucknow in Second Appeal Nos. 127, 125 and 126 of 2008 pertaining to the entry tax for the assessment years mentioned above. The brief facts of the case are that the revisionist, a Government of India undertaking is engaged in providing telephone services to its customers. During the assessment years under consideration, the revisionist had purchased and imported certain items such as scratch cards, telecom parts, C -Dot, telephone material, S.M.P.S., S.B.M., tower parts, antenna, B.T.S., etc., against declaration forms which were essential for providing the said services.
(2.) ACCORDING to entry No. 5 of Notification No. KA -NI -2 - 2283/XI -9(81)/91 -U.P. Ord. -21 -99 -Order -99 dated October 31, 1999 issued under sub -section (1) of section 4 of the U.P. Tax on Entry of Goods Ordinance, 1999, "Machinery and spare parts of machinery valuing ten lacs or more" are subject to levy of entry tax at two per cent of the value of goods. Therefore, the essential equipments which were purchased by the revisionist for establishing the telephone exchange and providing the telephone services, came to the clutches of the assessing officer, who had levied two per cent entry tax. The order of the assessing officer was confirmed not only by the first appellate authority but also by the Tribunal vide its impugned order. Not being satisfied, the assessee -revisionist has filed the present revisions. With this background, Sri M.M. Dewan, learned counsel for the revisionist, submits that by Notification No. KA -NI -2 - 2283/XI -9(81)/91 -U.P. Ord. -21 -99 -Order -99 dated October 31, 1999 entry tax at two per cent is leviable on "Machinery and spare parts of machinery valuing ten lacs or more". The value of ten lacs and above has to be considered for each individual item or machinery. In the instant case, each item is less than of Rs. 10,000. However, the total value of the machinery and parts were Rs. 1,09,05,482.
(3.) THE learned counsel further submits that the revisionist (BSNL) is not engaged in any trade or manufacture, but is involved in providing telephone services to its various subscribers and the materials purchased and used in providing such services are not at all covered in the head of "machinery or its parts" and as such are not liable to attract entry tax. Some of the items, in particular, could not in any case be treated as machinery. The value of most of the individual items is less than 10 lacs and as such no entry tax can be levied on such items (sic) submits that the lower authorities have wrongly rejected the claim of the assessee. Lastly, he made a request that the impugned order may kindly be set aside and necessary relief may be given to the assessee -revisionist.;