Prakash Krishna, J. - (1.) THE dealer opposite party carries on the business of manufacture and sale of P.V.C. Sheets and has been granted eligibility certificate under Section 4 -A of U.P. Trade Tax Act for the period from 19 -8 -1991 to 18 -8 -1999. Similar exemption has been granted to it in respect of inter State sales under notification No. 1094 dated 27 -7 -1991 issued by the State Government in exercise of powers conferred on it under Sub -section (5) of Section 8 of the Central Sales Tax Act (hereinafter referred to as the Act). Under the said notification, the dealer opposite party is entitled to claim total exemption in respect of inter State sales for the two assessment years. In the subsequent years, such a dealer is entitled to exemption at the rate prescribed in Annexure -1 to the notification. The dispute in the present case relates to the third assessment year from the date of grant of eligibility certificate. Under the notification, exemption is granted at 10% of the rate of tax normally applicable under Central Sales Tax Act to the goods concerned.
(2.) THE afore stated notification was amended subsequently by notification No. 1228 dated 31 -3 -1992. The amending notification provides that in column 4 of the earlier notification for the word 'Act' the words 'U.P. Sales Tax Act, 1948' shall be substituted. In other words, for the purpose of calculation of the exemption under the amended notification, the rate of tax as applicable to the goods in question in the State of U.P. would be applicable. P.V.C. Sheets manufactured by the dealer opposite party is taxable at the rate of 10% in the State of U.P. The dealer opposite party claimed that in respect of inter State sales of P.V.C. Sheets against form C to registered dealer, dealer is liable to pay tax at the rate of 4%. The said plea (sic) not (sic) favour either (sic) the Assessing Authority or with the first appellate authority. The Tribunal, however, by the order under revision, accepted the contention of the dealer opposite party and held that the dealer opposite party is liable to pay tax at the rate of 10% of 4%, as the tax payable under Central Sales Tax Act is 4% in the third year, if the sale has taken place against form C. In the memo of revision, the following question of law has been sought to be raised: (i) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold the taxability of the dealer on the central sales against form C in the third year of the exemption of the new unit at the rate of 10% of the 4% despite the fact in the third year of the exemption of tax was liable to be paid at the rate of 10% of the 10% as per provisions of the Act?
(3.) LEARNED Standing Counsel contends that the dealer opposite party was granted eligibility certificate No. 177 dated 24 -4 -1993 under Section 4 -A of U.P. Trade Tax Act and as per the said certificate, it is liable to pay the tax in the third year 10% of the due tax, in the fourth year 30% of the due tax, in the fifth year 40% and so on. The notification No. 1094 dated 27 -7 -1991 should be read with notification No. 1228 dated 31 -3 -1992. By the subsequent notification, the earlier notification having been amended, the only option left open to the dealer opposite party is either to accept the exemption as provided for under the eligibility certificate or to forgo it in toto.;