- (1.) By means of this writ petition, the petitioner has challenged the authorization order dated 22.2.2008/25.2.2008 passed by the Additional Commissioner, Grade-I, Commissioner Tax, Allahabad Zone, Allahabad granting permission under section 21(2) of U.P Trade Act Act for reassessment for the assessment year 2001-2002 (Central).
(2.) The petitioner, a partnership firm is carrying on business of procuring rice from paddy purchased within the State of U.P at its Rice Mill situate at Sirsa, Meja, Allahabad. It is also a recognition certificate holder issued under section 4-B of U.P Trade Tax Act for the relevant assessment year i.e 2001-2002. The petitioner purchased paddy within State of U.P and paid purchase tax @ 2%. The paddy was converted into rice.
(3.) The rice thus manufactured out of tax paid paddy was sold within and outside the State of U.P. The disclosed inter-state-sales of rice amounts to Rs.60,51,075/-. During the course of the assessment proceeding, the petitioner admitted its liability of tax on aforesaid inter-state-sales @ 4 % but also claimed adjustment of tax paid in the State of U.P on the purchases of paddy, under Section 15(c) of the Central Sales Tax Act. The said claim was allowed by the Assessing Officer by its order dated 2.1.2005. The Assessing Officer gave an adjustment of Rs.12,2245.00 in respect of tax already paid on purchases of paddy.;