Commissioner of Trade Tax, U.P. Appellant versus M/s. Kartos International Etc. Respondent
Decision Date- 6 April, 2011
UP Trade Tax Act, 1948 ” Central Sales Tax Act, 1956 ” exemption from payment of tax ” whether scientific and biological instruments/equipments manufactured and sold by the respondent/assessee would be entitled to get exemption from payment of tax under the UP Act as well as the Central Act in view of the notifications No. 1166 dated 10.4.2000 ” the Joint Commissioner (Appeals) held that the equipment manufactured and sold by the respondent are used as instruments in the research laboratories and therefore, the respondents are not entitled to claim exemption. The Tribunal also held that only such articles are exempted from tax which are used for educating children such as maps, charts, instrumental box, educational globe, biology instruments, and not those used for research purposes ” tax revision filed ” the High Court upheld the contention of the assessee/respondent and held that the assessee is entitled to the benefit of notification No. 1166 dated 10.4.2000 ” hence, the appeals ” the assessee himself never treated the goods as exempted goods and treated them as taxable goods which makes it clear that even the assessee was aware of the fact that the goods does not fall within ambit of the notification dated 10.4.2000 ” the Supreme Court noticed that what is exempted under notification dated 10.04.2000 are basic items to learn the Life Science and which are instruments and apparatus for learning Biology and other Life Science. However, the goods manufactured and sold by the assessee are not meant for Educational Institutions but are meant for Research Laboratories, therefore, held that the commodities in question are not covered by the said notification and are not entitled for exemption ” impugned order of the High Court set aside and of the Tribunal restored ” appeals allowed
