Rajes Kumar, J. - (1.) Present revision under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the "Act") is directed against the order of the Tribunal dated 8th December, 2005 relating to the assessment year, 2002-2003,
(2.) The applicant is a Division of the Northern Central Railway. During the year under consideration, it sold scrap for Rs. 10,47,98,988/-. Assessing authority levied the tax on the turnover of scrap at the rate of 4 percent at Rs. 41,91,959.52 paise and after giving the credit of tax of Rs. 32,95,856/- a demand of Rs. 8,96,103,52 paise was created along with the interest. First appeal filed by the applicant was dismissed by the Joint Commissioner (Appeals) vide order dated 23rd February, 2003. Second appeal before the Tribunal too has been dismissed by the impugned order. Tribunal has confirmed the levy of tax on the scrap and the dealer has been held liable for interest under Section 8(1) of the Act on the short deposit of the tax on the turnover of iron scrap.
(3.) Thus, short question involved in the present revision is whether levy of tax on the iron scrap and demand of interest under Section 8(1) of the Act on the short deposit of tax on the turnover of iron scrap are justified. Tribunal held that after the amendment in the definition of "business" in Section 2(aa) of the Act by U.P. Act No. 31 of 1995, the applicant activity of selling the scrap falls under the definition of "business" and thus, the applicant is liable to tax on the scrap. Tribunal further held that in view of the provisions of the Act, the applicant was clearly liable to tax on sale of scrap and thus, the tax due for non-deposit of such tax under Section 8(1) of the Act was chargeable.;