- (1.) Present revision under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 19th February, 2004 relating to the assessment year, 2000-2001.
(2.) The dealer/Opposite party (hereinafter referred to as "dealer") has established a new unit for the manufacturing of cement. Under the U.P. Trade Tax Act, cements liable to tax at the rate of 12 percent under the Notification No. KA.N1-2-306/XI dated 29.01.2001 including surcharge. The dealer claimed exemption under Section 4-A of the Act being a new unit. The Divisional Level Committee issued eligibility certificate granting exemption w.e.f. 21.11.1998. As per the notification, the dealer was not liable to pay any tax for two years. Assessing authority has allowed full exemption upto 20.11.2000. There is no dispute in this regard. However, for the period from 21.11.2000 to 31st March, 2001, dealer was entitled for exemption to the extent of 75 percent of the tax which comes to 9 percent and liable to pay tax at the rate of 3 percent. There is no dispute in this regard also.
(3.) Apart from exemption claimed under Section 4-A of the Act, dealer also claimed exemption under Section 4-AA of the Act and Notification No. TT-2-779/X1-9 (226)/94- U.P. Act 15/48-Order-95 dated 31.03.1995 issued in exercise of power under Section 4-AA of the Act to the extent of 25 percent of the 12 percent rate of tax i.e. 3 percent over and above exemption available under Section 4-A of the Act. There is no dispute that the dealer fulfilled the requirements of the notification issued under Section 4-AA of the Act and entitled for exemption. In view of the above, dealer claimed exemption of 9 percent under Section 4-A of the Act and 3 percent exemption under Section 4-AA of the Act and in this way claimed full exemption from tax during the year under consideration. Assessing authority allowed 9 percent exemption under Section 4-A of the Act, but under Section 4-AA of the Act allowed the exemption only to the extent of 25 percent of the 3 percent, which was the balance tax payable after the exemption under Section 4-A of the Act. First appeal filed by the dealer was rejected. Dealer filed second appeal before the Tribunal, which has been allowed by the impugned order.;