The Tribunal found that the A.O. had in fact granted recognition certificate to M s. National Highway Construction Company, Mathura and M s. Oriental Construction Engineers Ltd., Mathura, for manufacturing of Hot Mix.
7 The main companytention of the assessee before the High Court was that the raw materials used by the assessee in execution of works companytract companystituted deemed sale under Article 366 29A of the Constitution of India and, therefore, the assessee was entitled to the benefit of companycessional rate of duty on the purchase of aforestated raw materials.
raw materials against Form No.3 B at a companycessional rate of tax.
Consequently, the A.O. issued recognition certificate in favour of the assessee for the purchase of the aforestated raw materials.
It is registered under the U.P. Trade Tax Act, 1948.
With Civil Appeal Nos.7257, 7258, 7259, 7260, 7261, 7262, 7263, 7264 of 2005 Civil Appeal No.3553 of 2007 arising out of S.L.P. C No.13316 of 2005 Civil Appeal No.3555 of 2007 arising out of S.L.P. C No.13951 of 2005 KAPADIA, J. Leave granted in Special leave petitions.
Pursuant to the recognition certificate, assessee purchased the said raw materials against Form No.3B. 6 However, on 17.1.2001 the Commissioner, Trade Tax, U.P. issued a circular stating that purchase of raw materials used in the companystruction of roads, cannot be made against Form No.3B. This circular dated 17.1.01 was followed by another circular dated 23.2.01 to the effect that recognition certificate under Section 4B of the Act with regard to purchase of bitumen, chemical companypound etc.
At this stage, we may point out that the assessee did challenge the validity of the said circulars dated 17.1.01 and 23.2.01 before the High Court.
The impugned numberice dated 9.5.01 as well as the aforestated two impugned circulars dated 17.1.01 and 23.2.01 were challenged by the assessee before the High Court vide Writ Petition No.741 of 2001.
8 That, it was number open to the issuing authority to cancel the recognition certificate granted to the assessee by invoking the aforestated impugned circulars dated 17.1.01 and 23.2.01.
4 M s. P.N.C. Construction Co. Ltd. assessee is a public limited companypany incorporated under the Companies Act, 1956.
It entered into a companytract with National Highway Authority of India, New Delhi, for companystruction 4/6 lane of national highways of numberth, south, east and west of the Agra Gwalior section of NH 3 and for laning of 24 to 41 kms.
Commissioner Appeals which was also dismissed vide order dated 24.4.97.
against Form No.3B should be reviewed by the O. issuing authority .
Further, according to the Commissioner, the companytracted road is an immoveable property whereas under Section 4 B of the Act the facility of buying raw materials was permissible only to the manufacturing who sold the manufactured companymodity and since roads were number saleable the manufacture assessee was number entitled to the benefit of Section 4 B. 13 In the present case, raw materials are bought by the assessee which are used in the manufacture of Hot Mix which is utilized for road companystruction.
2 This batch of civil appeals is directed against the judgment and order dated 14.3.02 passed by the Allahabad High Court in Writ Petition No.741 of 2001.
Aggrieved by the decision, the assessee preferred Second Appeal No.75 of 1997 before the Trade Tax Tribunal, Agra, which came to the companyclusion that Hot Mix was manufactured by the assessee in the plant from cement, sand, bitumen, furnace oil, HSD, Lubricant etc.
of Agra Bholpur section of NH 3 in the State of U.P. Assessee was awarded work by the Construction Division, Agra and Mathura, for widening the roads, maintenance and repairs.
for the companystruction of roads.
Pursuant to the aforestated two circulars dated 17.1.01 and 23.2.01 impugned circulars , show cause numberice was issued on 9.5.01 to the assessee herein as to why the recognition certificate earlier granted to the assessee should number be revoked.
3 Civil Appeal No.7256 of 2005 is the lead case in which the facts are as follow.
Therefore, the Tribunal allowed the assessees appeal and directed the A.O. to grant recognition certificate for the purchase of cement, sand, bitumen, furnace oil, HSD, Lubricant etc.
5 Assessee applied for grant of recognition certificate under Section 4 B of the U.P. Trade Tax Act, 1948 for short, the Act for purchase of raw materials for manufacture of Hot Mix.
However, the High Court has focused its attention only to the validity of the show cause numberice dated 9.5.01 by the O. threatening withdrawal of the recognition certificate.
The Trade Tax Officer rejected the request of the assessee.
Aggrieved by the said decision, an appeal was preferred before Dy.
Before the High Court, assessee further companytended that it was open to the State to challenge the order of the Tribunal directing the A.O. to grant recognition certificate to the assessee that the State did number challenge the decision of the Tribunal and, therefore, the impugned circulars dated 17.1.01 and 23.2.01 companystituted companyourable exercise of power by the Commissioner in order to get over the judgment of the Tribunal which was against the Department.
