PRAKASH KRISHNA, J. - (1.) THE dealer/opposite party, a public limited company is registered in the name of M/s. Sadi Ram Ganga Prasad Ltd. with the Trade Tax Department and had obtained recognition certificate under Section 4B(2) of the U.P. Trade Tax Act, 1948 hereinafter referred to as ('the Act') for the purchase of wheat for manufacturing of atta, maida, sooji on concessional rates. It is authorised to purchase tin plates at concessional rates of tax for the purpose of manufacturing tin containers under Section 4B of the Act. The present revision arises out of proceedings initiated by the department under Section 4B(6) of the Act on the ground that the dealer/applicant after manufacturing tin containers has transferred the same to its other units.
(2.) IN reply to the show cause penalty notice, the dealer/applicant submitted that it has the following three manufacturing units, namely, (i) Ganges Flour Mill; (ii) Ganges Oil Mill; and (iii) Ganges Tin Works. Tin plates were purchased by M/s. Sadi Ram Ganga Prasad. The tin containers were transferred to M/s. Ganges Oil Mill to pack and sell oil. This transfer of tin containers to another unit does not amount to breach of any of the conditions of Section 4B of the Act inasmuch as M/s. Ganges Oil Mill is also unit of M/s. Sadi Ram Ganga Prasad Ltd., which is a company and registered dealer as such with the department. The assessing authority levied penalty on the premise that the transfer of tin containers thus purchased against form 3 -B to other units of company amounts to breach of Section 4B(2) of the Act. The Deputy Commissioner (Appeal) set aside the aforesaid order on the ground that the transfer of the tin containers to other units of the company does not amount to violation of Section 4B(6) of the Act, that such transfer does not amount to otherwise disposal of the tin containers. This order has been confirmed in the second appeal by the Tribunal under revision.
(3.) HEARD the learned Counsel for the parties and perused the record.;