RAJES KUMAR, J. - (1.) PRESENT revision under Section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as 'the Act') is directed against the order of Tribunal dated January 22, 2003 relating to the assessment year 1985 -86.
(2.) BRIEF facts of the case are that the opposite party is a Government under taking, purchased plant and machinery prior to September 13, 1985 and the same had been installed and used in the generation of electricity after September 13, 1985 and claimed that they were used in the year 1987. The aforesaid plant and machinery were purchased against form HID. The assessing authority raised the demand under Section 3G(3) of the Act on the ground that the plant and machinery had been purchased prior to September 13,1985 and had been used in the generation of the electricity and the provisions of Section 3G(1) of the Act were not applicable in view of Section 3G(2) of the Act, which says that the provisions of Sub -section (1) shall not apply to the sale of any goods which is purchased by such department, corporation, undertaking, company for resale or for use in the manufacture or packing of any goods, for sale, or if such department, corporation, undertaking or company has no office or establishment situated in Uttar Pradesh. Being aggrieved by the order, opposite party filed appeal before the Deputy Commissioner (Appeals), who vide order dated August 19, 1999 dismissed the appeal of the opposite party. The opposite party further filed appeal before the Tribunal. The Tribunal by the impugned order, allowed the appeal and set aside the demand raised under Section 3G(3) of the Act. The Tribunal held that though the machinery was purchased prior to September 13, 1985 but used after September 13, 1985 in the generation of the electricity therefore, in view of Section 3G(2) as amended by Amending Act No. 25 of 1985 with effect from. September 13, 1985 the provisions of Section 3G(1) of the Act were applicable in case of generation of the electricity. The Tribunal further held that Section 3G(2) of the Act is not applicable to the plant and machinery and is applicable to raw material as plant and machinery cannot be said to be the goods used in the manufacturing.
(3.) HEARD Sri B.K. Pandey, learned Standing Counsel and Sri Bharatji Agrawal, learned Senior Advocate, appearing on behalf of the opposite party;