M.Katju, J. - (1.) This writ petition has been filed for a writ of prohibition quashing the proceedings under Section 21 of the U.P. Trade Tax Act, 1948 in pursuance of the permission/authorisation granted by the respondent No. 2 under the proviso to Section 21(2) of the U.P. Trade Tax Act, 1948.
(2.) Heard learned counsel for the parties.
(3.) The petitioner No. 1 is a registered firm doing the business of civil construction and supply of building material to Government departments especially railways. The petitioner No. 2 is a partner of the firm. During the assessment year 1996-97 the petitioner-firm received payment of Rs. 17,22,771 from different Government departments in respect of construction work carried on by the firm. It is alleged in paragraph 4 of the writ petition that after making the deductions towards the trade tax, water charges, etc., the petitioner-firm received a sum of Rs. 12,53,358. After deducting labour charges and the amount of security the net amount received by the petitioner comes to Rs. 10,21,141. It is alleged that out of this amount the petitioner had purchased iron, steel, cement, grits and bricks of Rs. 10,07,496 from registered dealers within the State and the said material was used by the petitioner in construction work. The Trade Tax Officer, now designated as Assistant Commissioner, Trade Tax, Khand-2, Banda, after verifying the list of purchases from the original bills produced during the assessment proceedings granted exemption from payment of tax on the aforesaid amount of Rs. 10,07,496 and estimated the purchase of sand and morum from unregistered dealers at Rs. 18,000 and imposed tax on the said amount at Rs. 1,350. Since the various departments while making the payments to the petitioner had deducted trade tax to the tune of Rs. 36,048 as such the Trade Tax Officer vide his order dated December 4, 1999 ordered that after adjusting the tax of Rs. 1,350 from the amount which had been deducted from the bills of the petitioner the balance be refunded to the petitioner. True copy of the assessment order is annexure 1 to the writ petition.;