Uttar Pradesh Trade Tax Act, 1948

The Commissioner of Sales Tax, Uttar Pradesh, appealed against a judgment of the Allahabad High Court which had allowed M/s Hind Lamps Ltd. to adjust alleged refundable tax amounts against tax payable for April, May and August 1977. The dealer claimed refunds for assessment years 1968-69 to 1971-72 and unilaterally adj…

M/s Oswal Greentech Ltd., a holder of a recognition certificate under Section 4‑B of the Uttar Pradesh Trade Tax Act, purchased natural gas at a concessional rate using Form III‑B and used it to manufacture urea. Some of the finished urea was transferred out of Uttar Pradesh by way of stock transfer rather than by sale…

M/s. Goa Carbon Ltd., a leasing company, supplied plant and machinery to Kesar Enterprises Ltd. on lease and received lease rent. The Uttar Pradesh tax authorities issued notices under s.3F of the Uttar Pradesh Trade Tax Act, 1948, assessing tax on the lease rent, treating the transaction as a transfer of the right to …

M/s Bansal Wire Industries Ltd., a manufacturer of stainless steel wire, challenged the assessment that taxed its product at 4% under the Central Sales Tax Act, arguing that stainless steel wire is a "declared commodity" within the "iron and steel" category of Section 14(iv) and thus eligible for the 4% ceiling. The St…

The respondents, manufacturers of notified chemicals, were granted Recognition Certificates under Section 4‑B of the Uttar Pradesh Trade Tax Act, 1948, allowing them to purchase high‑speed diesel oil (HSD) at a concessional tax rate. In 2000 the State issued a circular and show‑cause notices directing the deletion of H…

The Commissioner of Trade Tax, U.P. sought revision of a seizure order on agro‑chemical drums, alleging that the goods loaded in a truck differed from those declared in the transit pass. The departmental authorities and the Trade Tax Tribunal found that the goods were indeed different and upheld the seizure. The Allaha…

The appellants, commission agents dealing in timber harvested by farmers, challenged assessments that treated them as "manufacturers" under the Uttar Pradesh Trade Tax Act, 1948 after an amendment to Section 2(ee). The State relied on a circular issued by the Commissioner of Trade Tax, which interpreted purchases from …

The assessee challenged a trade tax demand under the Uttar Pradesh Trade Tax Act, 1948, and obtained relief from the Tribunal. The revenue department filed revision petitions under section 11 of the Act, which the Allahabad High Court allowed, setting aside the Tribunal's orders. The assessee appealed to the Supreme Co…

The appellant, an agent of Mahindra & Mahindra, supplied motor parts to vehicle customers in Uttar Pradesh under a warranty agreement and received payment from the manufacturer. The assessing authority treated the payments as consideration for a sale under Section 2(h) of the Uttar Pradesh Trade Tax Act, 1948, and levi…

The State of Uttar Pradesh rescinded a 1998 notification that granted a tax rebate to cement manufacturers using fly ash, by issuing a 2004 notification. Birla Corporation Ltd. and Jai Prakash Associates Ltd., which had set up units and begun production before the 2004 rescission, claimed that the rebate entitlement fo…

The appellant, Trimurthi Fragrances, challenged the levy of sales tax by Delhi, Uttar Pradesh and Tamil Nadu on pan masala containing tobacco and gutka, arguing that the product is covered by an entry in the First Schedule of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (ADE Act) and therefor…

The Uttar Pradesh Government, under Section 5 of the Uttar Pradesh Trade Tax Act, 1948, issued a notification granting a tax rebate on cement containing fly‑ash, but only to units located within Uttar Pradesh. Cement manufacturers in neighboring states, who purchased fly‑ash from Uttar Pradesh but produced cement outsi…

The assessee, Mis. Malviya Chemical & Pharmaceutical Pvt. Ltd., was granted an exemption under Section 4A of the Uttar Pradesh Trade Tax Act for production exceeding a fixed base‑production of 172.8 MT. In AY 1992‑93 it sold 382.125 MT and claimed exemption on the excess 209.325 MT, filing monthly returns and depositin…

The assessee, Mohan Brickfield, was engaged in brick manufacturing and sales. During two surveys of its premises in 1984-85, it failed to produce its books of accounts, which were later produced at the time of assessment. The Assessing Officer rejected the books, citing the non‑production at the surveys and other discr…

Dhampur Sugar Mills Ltd entered into a licence deed to use a sugar mill, agreeing to pay the licence fee largely in molasses. The revenue department assessed trade tax on the molasses, treating it as a sale under the Uttar Pradesh Trade Tax Act, 1948. The appellant argued that the molasses payment was a barter, not a s…

The Commissioner of Trade Tax appealed against a High Court order that had allowed the inclusion of both bottles and crates used by Varun Beverages Ltd. in the definition of "fixed capital investment" under Section 4‑A(4) of the Uttar Pradesh Trade Tax Act, 1948, thereby granting tax exemption. The issue was whether bo…

The appellant, Triveni Glass Ltd., manufactured tinted glass sheets using a process and raw materials different from plain sheet glass. The revenue assessed tax at 15% on these sheets under Entry IV of Notification No.5784, treating them as "all goods and wares made of glass" and excluded them from the 10% residuary ra…

The appellants, leasing companies, entered into master lease agreements for equipment and were taxed by several states on the transfer of the right to use the goods. The states relied on explanations in their sales tax statutes that deemed the taxable event to occur where the goods were used, irrespective of where the …

M/s Aristo Printers Pvt. Ltd. prints lottery tickets for its customers and procures its own ink and processing chemicals. The Uttar Pradesh Trade Tax Officer levied tax under Section 3F(1)(b) of the Uttar Pradesh Trade Tax Act, 1948 on the value of the ink and chemicals, arguing that they were transferred to the custom…

The appellant, Commissioner of Trade Tax, Uttar Pradesh, challenged the respondent M/s Kartos International's claim that its scientific and biological equipment—such as biosafety cabinets, laminar flow cabinets, fume hoods, and clean room garments—were exempt from trade tax under Notification No. 1166 dated 10‑April‑20…

The Supreme Court examined whether pan masala and gutkha, products containing betel nut and sometimes tobacco, could be taxed under various state sales‑tax statutes despite being listed as exempt under the Central Sales Tax Act, 1956. The Court analysed the classification of these products under the Central Excise Tari…

The State of Uttar Pradesh appealed against the High Court’s order that the Department of Telecommunications (DoT) was not liable to Uttar Pradesh Trade Tax on rentals collected from telephone subscribers. The Supreme Court examined whether the DoT qualifies as a "dealer" under Section 2(c) of the Uttar Pradesh Trade T…

The respondents, M/s National Industrial Corporation Ltd., used paddy husk as fuel and were assessed sales tax under various Uttar Pradesh Trade Tax notifications. They contended that paddy husk was first included as a taxable commodity only by the notification dated 6 June 1996, and that earlier assessments were inval…

Mis. Modipan Fibres Company claimed exemption under Uttar Pradesh Notification No. 1093/1991 for the turnover of goods sold in excess of its base production. The Assessing Authority allowed exemption only on sales made after the base production was achieved, while the company argued that exemption should apply to the e…

The appellant, an agent purchasing mentha oil in Uttar Pradesh for principals outside the state, was detained by the State Revenue for not deducting tax under Section 8‑E of the Uttar Pradesh Trade Tax Act, 1948. The agent filed a writ petition challenging the constitutional validity of Section 8‑E, arguing that the tr…