SUNEET KUMAR,J. - (1.) The revision pertains to assessment year 1996-97 arising from an order dated 18 January 2006 passed by the Trade Tax Tribunal in Second Appeal No. 295 of 2005 under the U.P. Trade Tax Act, 1948.
(2.) The question of law referred is as to whether the First Appellate Authority was within its jurisdiction in imposing tax upon the dealer under Section 3F in proceedings under Section 22 of the U.P. Trade Tax Act, 1948(Act).
(3.) The revisionist-assessee is a company registered under the Companies Act, 1956, engaged in the manufacture and sale of Sugar Plant and Machinery. Pursuant to a lease agreement, the revisionist was to deliver several machinery to the sugar unit of the lessee within the State. The rental amount received by the revisionist from the lessee was not amenable to tax on transfer of the right on the goods under Section 3F, however, the Tax Authorities levied tax on the rent. Aggrieved, revisionist preferred an appeal, inter alia, contending that Section 3F has been declared ultra vires, therefore, assessee is not liable to pay tax on lease rent. 1. Act The appellate authority remanded the matter to the Assessing Authority for decision afresh, both on the question of applicability of Section 3F and on certain other claims.;