Rajes Kumar, J. - (1.) These two revisions under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the "Act") are directed against the order of the Tribunal dated 13th August, 2004 relating to the assessment year, 1994 95 and 1995-96.
(2.) It is alleged that the applicant was engaged in the business of hire purchase and leasing of plant and machinery, motor vehicle etc from its registered office situated at 17-B, Asaf Ali Road, New Delhi. During the assessment year, 1986-87, it is alleged that M/S Coolade Beverages (a unit of M/S Sikand Polypack Pvt. Ltd., 7, Barakhamba Road, New Delhi), hereinafter called as Lessee Company, approached the applicant company for financing the plant and machinery on lease basis for the purpose of installation of the same in their plant situated in the State of U.P. for which a proposal was signed on 5th March, 1987 and the lease agreement dated 20th March, 1987, copy of which is Annexure-3 to the revision was finally executed at New Delhi. For the execution of the agreement, orders were placed to M/S Express Bottlers Services Pvt Ltd, Bombay and M/s Setwell Conveyors, Bombay, who have despatched the machinery directly to the factory of lessee Company Copies of bills of M/s Express Bottlers Services Pvt. Ltd dated 26th February, 1987 and Setwell Conveyors dated 5th March, 1987 are annexed as Annexure-2 to the revision by which the goods were purchased and given on lease to the lessee, Machinery were to be installed at plot No. 19/1, Site No. IV, Industrial Area, Sahibabad, Ghaziabad. Similarly, in the year, 1990, M/S Ajay Forgings Pvt. Ltd, M.G. Road, Calcutta approached the applicant for financing the plant and machinery on lease basis for the purpose of installation of the same at their plant situated in the State of U.P. Agreement was executed on 6.11.1990 at Delhi, which is Annexure-7 to the revision. It is alleged that in pursuance of the agreement, orders were placed to M/S Avtar Steel & Agro Industries, Mandi Govindgarh, Punjab, who have despatched the machinery against bill No. 10 dated 26.10.1990, copy of the bill is Annexure-6 to the revision.
(3.) During the year under consideration, applicant has received lease rent from M/S Coolade Beverages Ltd a unit of M/S Sikand Polypack Pvt Ltd, 7- Barakhamba Road, New Delhi and M/S Ajay Forgings Pvt Ltd, M.G. Road, Calcutta against leasing of machinery at Ghaziabad, U.P. Assessing authority levied the tax on the lease rent under Sections 3-F of the Act. First appeals filed by the applicant were rejected. Applicant filed second appeals before the Tribunal which were also rejected by the impugned order. Before the Tribunal, applicant had raised following issues: (1) An agreement dated 20.3.1987 and 6.11.1990 was executed at Delhi and, therefore, the transfer of right to use the goods took place at Delhi and not in the State of U.P. and, therefore, notax can be levied under Section 3-F of the U.P. Trade Tax Act. In support of the submission, reliance was placed on the decision of the Apex Court in the case of 20th Century Finance Corporation Ltd. v. State of Maharashtra, 2000 NTN Volume-16 page 425. (2) Commissioner of Trade Tax vide order dated 14th February, 2000, appointed Assistant Commissioner, Trade Tax, Sector-3. Moradabad as the Assessing Authority who has passed order for the assessment year, 1991-92 and 1993-94, therefore, the Trade Tax Officer, Sector-1 Ghaziabad had no jurisdiction to pass the order inasmuch as he was not the Assessing Authority.;