- (1.) This revision is directed against the order dated February 6, 1995 passed by the Trade Tax Tribunal, Ghaziabad, in second appeal No. 17 of 1994 for the assessment year 1988-89 (U.P.). The dealer-opposite party is a new unit within the meaning of Section 4A of the U.P. Trade Tax Act, 1948 and its sales were exempt from payment of sales tax in the relevant assessment year 1988-89 (U.P.). It is engaged in manufacture and sale of electric stamping, ceiling fans and scraps, etc. The account books were accepted by the assessing authority and on the turnover of sale of stamping and of manufactured ceiling fans were granted exemption. But the assessing officer levied tax on the sale of iron scraps, tin scrap and copper scrap. He was of the opinion that on the sale of such items the dealer-opposite party, holder of eligibility certificate, is not entitled to exemption under Section 4A of the Act.
(2.) The core question involved in the present revision is about the levy of tax on the sale of iron scrap, tin scrap and copper scrap, when the turnover of the manufactured electric stamping and ceiling fans have been granted exemption under Section 4A of the Act.
(3.) Heard, the counsel for the parties and perused the record. The assessing authority as well as the appellate authority refused to grant exemption on the sale of scraps of iron, steel and tin on the ground that the same are not covered by the eligibility certificate. The Tribunal has granted exemption on these items also on the finding that the Full Bench of Tribunal, in the case of assessee has held that no trade tax is payable on such scrap. It has also placed reliance upon a circular dated April 24, 1992 issued by the Commissioner of Sales Tax.;