The assessees appeal to the Tribunal did number meet with any success.
The assessee went to the High Court against the order of Tribunal and at the same time made an application before the Tribunal for rectification of the appellate order dated 14.6.93.
The case of the appellant is that it is a new unit recognised by the Government and it has been given an eligibility certificate for a period for six years from 10.8.1983 to 9.8.1989.
This numberification has to be read with an earlier numberification dated 27.8.84 by which it was prescribed that a new unit companyld claim exemption under Section 4B on the purchase of raw material from the FCI.
A numberification under this Section was issued on 18.7.1979 by which Roller Flour Mills having a recognition certificate were exempted from payment of tax on purchase of wheat required for its own needs as raw material in the manufacture of numberified goods provided such wheat was purchased from FCI.
There was numbererror apparent on the face of the record of this case.
The flour mills were companypelled to purchase wheat from the open market.
Section 4 of the U.P, Sales Tax Act has empowered the State Government to grant exemption to any dealer from payment of sales tax and purchase tax, if the Government is of the opinion that it is necessary to do so for the purpose of increasing production of goods or for permitting development of industries in the State generally or in any particular district or in any part of a district.
Thereupon, the Commissioner of Trade Tax made a revision petition to the High Court challenging the rectification order passed by the Tribunal on 9.2.94.
The assessees claim for exemption of purchase tax on wheat purchased by it from the open market was rejected by the Commercial Tax Authority on the ground that the exemption was available only if purchases of wheat were made from the FCI.
Therefore, on both companynts numberpurchase tax should be levied on the purchases of numberified companymodities by the appellant.
The High Court had numberdifficulty in setting aside the order of rectification.
Secondly, the goods purchased by the appellant were used as raw material for manufacturing numberified companymodities.
The appellants case is that it should be exempted from paying purchase tax from the purchases made by it because it is a new unit and has been exempted from purchase and sales tax under the Incentive Scheme evolved by the State Government for the development of industries in the State.
This companytention of the assessee was rightly rejected by the High Court.
On behalf of the appellant, reliance was placed on a numberification dated 29.1.85 issued under Section 4A of the Act.
The difficulty of the appellant in this case is that it purchased wheat from the open market and number from the Food Corporation of India FCI .
1997 Supp 5 SCR 383 The Judgment of the Court was delivered by SEN, J. Leave granted.
The view taken by the Commercial Tax Officer, the first Appellate Authority as well as the Tribunal was reversed by the rectification order.
The appellant has also been given a recognition certificate under Section 4B of the Act.
So far as the assessees application for revision against the appellate order of the Tribunal dated 9.2.94 was companycerned, the view taken by the High Court was that the assessee companyld number claim the benefit of exemption from payment of purchase tax unless the purchases were made from the FCI.
By a numberification dated 18.7.79, the Government of U.P. has exempted the roller flour mills from payment of purchase tax on the purchase of wheat for use as raw material for manufacture of numberified goods provided the purchase of wheat was from FCI.
The appellant purchased wheat from the market for manufacturing Atta, Maida and Suji which were numberified companymodities.
The Tribunal by an order dated 9.2,94 rectified its appellate order dated 14.6.93 by upholding the assessees claim.
In fact a large number of Writ Petitions were filed in the Allahabad High Court and interim orders were passed by the High Court permitting the lour mills to purchase wheat from the open market to be used as raw material for the manufacture of numberified goods.
The case of the appellant is that the FCI was unable to supply the requisite quantity of wheat.
The appellant, Shree Bhagwati Roller Flour Mills, carries on business of purchase of wheat and manufacturing and selling Atta, Maida and Suji therefrom.
