Allahabad High Court
S/Shri Shankar Rice Mill vs State Of U.P. & Others on 27 January, 2010
Bench: Rajes Kumar, Rakesh Sharma
Court No. - 37 Case :- WRIT TAX No. - 1816 of 2008 Petitioner :- S/Shri Shankar Rice Mill Respondent :- State Of U.P. & Others Petitioner Counsel :- Ved Prakash Singh Respondent Counsel :- C.S.C. Hon'ble Rajes Kumar,J.
Hon'ble Rakesh Sharma,J.
Heard learned counsel for the petitioner and learned counsel for the respondents.
The issue involved in the present case is squarely covered by a decision of this Court in the case of M/s Aryaverth Chawal Udyog and others Vs. State of U.P. and others along with other connected petitions reported in 2008 UPTC, 881, wherein the following has been held:
"(i) Section 15 (c) of the Central Act provides reduction of tax leviable on the turnover of rice under the U.P. Trade Tax Act with the tax levied on the paddy out of which such rice was procured. It does not provide any reduction of tax under the Central Act by the tax on paddy under the State law out of which such rice was procured.
(ii) The proceedings under Section 21 of the Act have been initiated without any material on the basis of which believe could be formed that there was escaped assessment, namely, that the tax levied on the inter-
State sales of rice under the Central Act has been wrongly reduced by the tax levied on paddy under the U.P. Trade Tax Act out of which such rice was produced except on account of change of opinion."
Respectfully following the aforesaid decision, the writ petition is allowed in part. The reassessment proceeding for the assessment year 2002-03 under the Central Sales Tax Act is hereby quashed.
Order Date :- 27.1.2010 R./