- (1.)Present revision under Section 11 of U.P. Trade Tax Act (hereinafter referred to as the 'Act') is directed against the order of the Tribunal dated 31.05.1999 relating to the assessment year 1995-96, by which, the Tribunal has deleted the penalty levied under Section 8-D(6) of the Act.
(2.)The brief facts of the case are that during the year under consideration vide agreement dated 01.11.1994, Dealer/Opposite Party (hereinafter referred to as the Dealer ) had purchased one Began Fired Boiler from M/S Bal Chandra Nagar Industries, Pune and also entered into a contract on 27.4.1995 with Sri O.P. Singh, Contractor for erection of the said Began Fired Boiler, Pune. The Assessing Authority was of the view that the supply as well as erection of the Began Fired Boiler by M/S Bal Chandra Nagar Industries, Pune and its erection by Sri O.P. Singh, Contractor was a works contract, therefore, while making the payment to the aforesaid two parties, dealer should have deducted the tax under Section 8-D(1) of the Act. Dealer submitted that it had purchased Begun Fired Boiler from M/S Bal Chandra Nagar Industries, Pune against From- C and the contract was for supply and not for the works contract. It was also Submitted that the second agreement with Sri O.P. Singh, Contractor dated 27.4.1995 was also for erection which was in the nature of labour work, in which, there was no involvement of the material, therefore, there was no liability of dealer to deduct the tax under Section 8-D(1) of the Act. The Assessing Authority, however, had not accepted the plea of the dealer and levied the penalty under Section 8-D(6) of the Act. The First Appellate Authority remanded back the matter to the Assessing Authority. Being aggrieved by the order of the First Appellate Authority, the dealer filed appeal before the Tribunal. The Tribunal by the impugned order accepted the appeal of the dealer. The Tribunal held that both the agreements were not in the nature of works contract and the first agreement dated 1.11.1994 with M/S Bal Chandra Nagar Industries, Pune was for supply of Began Fired Boiler, Pune against Form-C and the second contract dated 27.4.1995 with Sri O.P. Singh, Contractor was for the labour contract.
(3.)Heard Counsel for the parties and perused the order of the Tribunal and the authorities below.