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2006 DIGILAW 368 (ALL)

Commissioner, Trade Tax v. Noorie Manure Mill

2006-02-07

RAJES KUMAR

body2006
RAJES KUMAR, J. ( 1 ) PRESENT revision under Section 11 of the U. P. Trade Tax Act (hereinafter referred to as the "act") is directed against the order of the Tribunal dated 30th November, 1998 relating to the assessment year, 1992-93 under the Central Sales Tax Act. ( 2 ) THE short question involved in the present revision relates to the taxability of the "crushed horns and Hoofs". The dealer-opposite party (hereinafter referred to as "dealer") claimed that it is not liable to tax on the turnover of Crushed Horns and Hoofs under the Central Sales Tax Act being exempted under the U. P. Trade Tax Act, while it has been taxed by the assessing authority treating it as crushed bones taxable under the notification No. 6583 dated 30th September, 1982. The claim of the dealer was rejected on the ground that it was not exempted from tax being covered under crushed bones. First appeal filed by the dealer was allowed. It was claimed before the appellate authority that crushed horns and hoofs were exempted from tax under the U. P. Trade Tax Act under the Notification No. 6569 dated 12. 9. 1986. First appellate authority accepted the claim of the dealer and granted exemption on the central sales in view of Section 8 (2-A) of the Central Sales Tax Act. Commissioner of Trade Tax filed appeal before the tribunal. Tribunal by the impugned order, rejected the appeal of the Commissioner of Trade tax. Tribunal held that under the notification No. 6569 dated 12. 9. 1986 "horns. Comb and all other articles made from Horns" are exempted from tax under Section 4 of the U. P. Trade Tax act. Tribunal further held that Horns and Hoofs are also not liable to tax under the entry "bonesin cluding horns and hoofs but not including crushed bones". Tribunal held that from the aforesaid entry only crushed bone has been excluded and not "crushed Horns and Hoofs". Tribunal also observed that Horns and Hoofs are used as fertilizer and not used for any other purpose and fertilizer is exempted from tax. ( 3 ) HEARD learned Counsel for the parties. ( 4 ) I learned Standing Counsel submitted that under entry 6 of Notification No. 7038 dated 31. 1. Tribunal also observed that Horns and Hoofs are used as fertilizer and not used for any other purpose and fertilizer is exempted from tax. ( 3 ) HEARD learned Counsel for the parties. ( 4 ) I learned Standing Counsel submitted that under entry 6 of Notification No. 7038 dated 31. 1. 1985 Horns and Hoofs are included in Bones and, therefore, crushed Horns and Hoofs are also excluded being crushed bones and are taxable under notification No. 6583 dated 30. 9. 1982. He further submitted that the crushed bones is not covered under the entry "horns, comb and all other articles made from horns" of notification No. 6569 dated 29. 9. 1986 because crushed bone is not an article made from Horns. He also submitted that the Horns and Hoofs are known as bones in common parlance and commercial sense and by way of clarification they have been included in bones, though they are always treated as Bones. He submitted that in the case of hindustan Bone Mills v. CST reported in 2005 UPTC 886, this Court held that crushed bone is not fertilizer. . .