SATISH CHANDRA, J. - (1.) THESE writ petitions challenge the validity of two assessment orders dated 16th March, 1973, passed under section 21 of the U.P. Sales Tax Act for the assessment years 1967-68 and 1968-69.
(2.) FOR the assessment year 1967-68 the petitioner was, by an assessment order dated 16th August, 1969, assessed to a sales tax of Rs. 8,071.16 on a turnover of Rs. 3,58,254.18. This turnover consisted of the following commodities : rate of tax 1. Purchase of rab 6,319.24 5 per cent 315.95 2. Sale of khand 2,80,283.94 2 per cent 5,605.68 3. Sale of molasses 71,651.00 3 per cent 2,149.53 ----------- -------- 3,58,254.18 8,071.16 ----------- -------- For the assessment year 1968-69 the petitioner was by another assessment order of the same date assessed to a sales tax of Rs. 5,913.58 on a turnover of Rs. 2,70,246.29. This turnover consisted of the following commodities : rate of tax 1. Purchase of rab 2,19,382.79 5 per cent 4,387.66 2. Sale of molasses 50,863.50 3 per cent 1,525.92 ----------- -------- 2,70,246.29 5,913.58 ----------- -------- In these assessment orders the Sales Tax Officer had rejected the petitioner's contention that the sale of molasses was totally exempt from sales tax and that he was not liable to pay any sales tax on the turnover of molasses. Feeling aggrieved the petitioner filed these writ petitions in this court. At the hearing of the writ petition the sole point urged was that gur-lauta and molasses were one and the same commodity and as such molasses were completely exempt from sales tax under section 3-A of the U.P. Sales Tax Act. A Division Bench of this Court had in Commissioner of Sales Tax v. M/s. Sethu Prasad Lalta Prasad (Special Appeal No. 627 of 1963 decided on 24th January, 1969) held that gur-lauta is only a hardened form of molasses and is not a new kind of commodity. In view of this decision a Bench of this Court allowed the writ petition on 11th March, 1970, by holding that since khandsari molasses and gur-lauta were the same commodity, and since gur-lauta has been subjected to purchase tax under section 3-D, the turnover of molasses would be exempt from sales tax. It was observed that in view of this decision the view taken by the assessing authority cannot be upheld and in the result the impugned assessment orders dated 16th August, 1969, were quashed.
(3.) THIS order of the Division Bench allowing the writ petitions became final inter-parties.;