JUDGMENT Rajesh Kumar - These are two revisions against the order of the Tribunal dated May 26, 2003 for the assessment years 1996-97 and 1997-98 both under the Central Sales Tax Act, 1956 (called, "the Central Act", for short). The dispute in both the revisions relates to the rate of tax on the inter-State sales of iron kamani, which is a declared commodity under section 14 of the Central Act, whether it is liable to tax at the rate of four per cent or at the rate of two per cent. The Tribunal has held that it is liable to tax at the rate of two per cent. The brief facts of the case are that the assessee has manufactured iron kamani from iron leaves purchased within the State of U.P. after paying the tax. Such kamani has been sold in the course of inter-State sales and on the turnover the assessee admitted the tax at the rate of two per cent. The claim of the assessee had been rejected by the assessing authority on the ground that under Notification No. 1626/XI/7 dated May 21, 1994 such kamani was liable to tax at the rate of two per cent on the condition that tax has been paid on raw material. Therefore, in view of the Explanation of section 8(2A) of the Central Act, kamani was not generally liable to tax under the State Act at the rate of two per cent. The assessing authority accordingly levied the tax at the rate of four per cent. Being aggrieved by the assessment orders, the assessee filed two appeals before the Deputy Commissioner (Appeals) which have been dismissed. Being aggrieved by the order of the first appellate authority, the assessee filed second appeals before the Tribunal which have been allowed by the impugned order. The Tribunal allowed the appeal and levied tax on such kamani at the rate of two per cent on the ground that in the earlier year two per cent tax has been levied. Heard Sri B. K. Pandey, standing counsel, and Sri R. R. Agrawal, counsel for the assessee. The Tribunal allowed the appeal and levied tax on such kamani at the rate of two per cent on the ground that in the earlier year two per cent tax has been levied. Heard Sri B. K. Pandey, standing counsel, and Sri R. R. Agrawal, counsel for the assessee. The learned standing counsel submitted that kamani was liable to tax at the rate of two per cent under Notification No. 1626 dated May 21, 1994 issued in exercise of power under section 3A of the U.P. Trade Tax Act, 1948 (called "the Act", for brevity) on the condition that it was manufactured out of the tax-paid raw material. Therefore, the rate of tax at the rate of two per cent on such kamani was conditional and it was not generally liable to tax at the rate of two per cent and, therefore, in view of the Explanation to section 8(2A) the provision of section 8(2A) of the Central Act does not apply and the Tribunal has wrongly levied the tax at the rate of two per cent. He further submitted that under the notification dated January 31, 1995, issued in exercise of power under section 8(5) of the Central Act the declared commodity is liable to tax at the rate of four per cent, whether such turnover is covered under form C or not. Sri R. R. Agrawal, learned counsel for the assessee, has submitted that kamani was liable to tax at the rate of two per cent under Notification No. 1626 dated May 21, 1994, therefore, in view of section 8(2A) of the Central Act it is liable to tax at the rate of two per cent. He further submitted that under section 15(b) of the Central Act in case of sale of declared commodity the assessee is entitled for the reimbursement of the tax paid under the State law and since the assessee has paid tax at the rate of two per cent under the State Act, the assessee is entitled for the reimbursement of the tax. Having heard learned counsel for the parties, I have perused the impugned order. Having heard learned counsel for the parties, I have perused the impugned order. Notification No. 1626 dated May 21, 1994 under the Act and section 8(2A) of the Central Act read as follows : "(S. No. 1141) Notification No. TT-2-1626/XI-7(159)/91-U.P. Act - 15/48 - Order - 94, dated May 21, 1994 (Published in U.P. Gazette, dated May 21, 1994) In exercise of the powers under clause (a) of sub-section (1) of section 3A of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904), the Governor is pleased to make with effect from June 1, 1994, the following amendment in Government Notification No. ST-2-5782/X-10(1)/80-U.P. Act - XV/48 - Order - 81, dated September 7, 1981, as amended from time to time : Amendment. - In the list to the aforesaid notification for the entry at serial No. 6, the following entry shall, columnwise be substituted, namely :- S. No. Description of goods Point of tax Rate of tax 1 2 3 4 6. (a) Iron and steel as defined in section 14 of the Central Sales Tax Act, 1956 if manufactured from the raw material on which tax has been paid within the the State under the Uttar Pradesh Trade Tax Act, 1948 M or I 2% (b) Iron and steel as defined in section 14 of the Central Sales Tax Act, 1956 other than that mentioned in sub-item (a) above." M or I 4% "Section 8(2A) Notwithstanding anything contained in sub-section (1A) of section 6 or sub-section (1) or clause (b) of sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, exempt from tax generally or subject to tax generally at a rate which is lower than four per cent, (whether called a tax or fee or by any other name), shall be nil, or as the case may be, shall be calculated at the lower rate. Explanation. Explanation. - For the purposes of this sub-section a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods." Notification No. 1626 dated May 21, 1994 is the notification under section 3A of the Act. The tax on the iron steel is at the rate of two per cent on the condition that it is manufacture from the tax paid raw material. The tax at the rate of two per cent is conditional and not general tax on the said commodity and, therefore, in view of the Explanation of section 8(2A) the assessee is not entitled for the benefit of section 8(2A). The aforesaid view is supported by the decision of the apex court in the case of Commissioner of Sales Tax, Jammu and Kashmir v. Pine Chemicals Ltd. reported in [1995] 96 STC 355 (SC); [1995] UPTC 609. The submission of learned counsel for the assessee, that in view of section 15(b) of the Central Act the tax has rightly been levied at the rate of two per cent is misconceived. Section 15(b) does not apply in the present case for the reason - (1) that it contemplates the reimbursement of the tax paid under the State law and (2) in the present case the assessee is the manufacturer of kamani. Kamani has not been sold at any stage in the State of U.P. and no tax was levied and paid on the turnover of kamani under the U.P. Trade Tax Act. In the result, the order of the Tribunal is liable to be set aside and the order of the assessing authority is liable to be restored so far as it levies the tax on the inter-State sale of kamani at the rate of four per cent. Accordingly, the revision is allowed with costs, which is assessed at Rs. 500. In the result, the order of the Tribunal is liable to be set aside and the order of the assessing authority is liable to be restored so far as it levies the tax on the inter-State sale of kamani at the rate of four per cent. Accordingly, the revision is allowed with costs, which is assessed at Rs. 500. The order of the Tribunal is hereby set aside and the order of the assessing authority is restored so far as it levies the tax on the inter-State sale of kamani at the rate of four per cent.