- (1.) The main grievance of the petitioner is that although it has ultimately succeeded in its contention that there is no liability to pay any trade tax in respect of the Bio Gas Plant supplied and installed by the petitioner at Kesar Sugar Works and Indian Turpentine and Rosin Co. Bareily for the assessment years 1987-88, 1990-91 and 1991-92, but the trade tax, which it deposited at the insistence of the respondents wrongly treating the said Bio Gas Plant as unclassified item, is not being refunded.
(2.) The petitioner, a private limited company, having its registered office at Nagpur entered into a tripartite agreement with Indian Turpentine and Rosin Company and Industrial Finance Corporation of India for installation of Bio Gas Generating Plant at the premises of Indian Turpentine and Rosin Company Bareily. Similar agreement was entered into for supplying and installation of Bio Gas at Kesar Sugar Mills Baheri (District Bareilly). The Assistant Commissioner (Assessment) Trade Tax, Bareilly by means of three separate assessment orders for the aforesaid three relevant assessment years all dated March, 22nd, 1993 (collectively filed as annexure -1 to the writ petition) held that the supply and installation of Bio Gas Plant is liable to be taxed under the provisions of U.P. Trade Tax Act at the rate of 10 per cent as unclassified item.
(3.) The petitioner unsuccessfully challenged these orders in three separate appeals which were decided by Deputy Commissioner (Appeals), Trade Tax by the common order dated 19th March, 1994. Thereafter, it filed three second appeals being appeals no.231 of 1994, 232 of 1994 and 233 of 1994 for the assessment years 1990-91, 1987-88 and 1991-92 respectively before the Trade Tax Tribunal, Lucknow. The Tribunal allowed all the three appeals. It has recorded a finding that the supplies made by the petitioner through Industrial Finance Corporation of India to Indian Turpentine and Rosin Company Limited, Bareilly, the Bio Gas Generating and Equipment Treatment supplied by the petitioner is not liable to be taxed as it is covered by Notification No.7038 dated 31st of January, 1985 under Entry 23 being item No.30. But it directed that the question as to whether there was a relationship of lessor and lessee in between Industrial Finance Act of India and Indian Turpentine & Rosin Company has to be examined under section 3 F (1) (a) of the Act for the assessment years 1990-91 and 1991-92.;