- (1.) Heard Sri Kunwar Saksena, learned counsel for the assessee/revisionist and Sri U.K.Pandey, Standing Counsel for the respondent/department.
(2.) The two revisions relates to assessment years 1997-98 and 1998-99. The assessee is carrying on business of buying and selling of arms and ammunitions and is registered under the provisions of Section 8-A of the U.P. Trade Tax Act (for shot 'Act').
(3.) It is not disputed that the tax liability on arms and ammunitions has been prescribed at the stage of manufacture and import only. The assessee had imported arms and ammunitions and made sale thereof. In addition to that the assessee had also purchased used/second hand arms from the licensees and made sale thereof. As far as the import of arms and ammunitions and their sale is concern there is no dispute. However, with regard to purchase of used/second hand arms from licensees and their sale tax liability has been created by treating the assessee a manufacturer within the meaning of Section 2(ee) of the Act.;