IMPORTANT POINT
Only the common parlance meaning of a term should be taken into consideration for the purpose of determining the tax liability.

JUDGMENT

Dr. Mukundakam Sharma, J. —

1. Leave granted.

2. The present appeals are filed against the impugned judgment and order dated 25.5.2009 in TTR No. 329/2007 & TTR No. 330/2007 & TTR No. 331/2007 & TTR No. 332/2007 & TTR No. 333/2007 & TTR No. 334/2007 passed by the High Court whereby the High Court allowed the Trade Tax Revision filed by the respondent and reversed the order passed by the Trade Tax Tribunal, UP (Noida Bench).

3. The issue that falls for our consideration in the present appeals is 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 Trade Tax Act, 1948 (for short “the UP Act”) as well as the Central Sales Tax Act, 1956 (for short “the Central Act”) in view of the notifications No. 1166 dated 10.4.2000. The aforesaid issue was the only issue which was decided by the Tribunal in favour of the respondent - assessee and therefore in this appeal we are required to answer and decide the said issue, which is framed by us.

4. In order to answer the aforesaid issue which arises for our consideration, it would be necessary to set out some facts leading to filing of the present appeals.

5. The assessee/respondent is a proprietorship firm, which is engaged in the manufacture and sales of various “scientific and biological equipments/instruments, which are used mainly by biological scientists for research purposes for which the assessee is duly registered under the provisions of U.P. Act as well as the Central Act. The assessee/respondent was issued a notice by the assessing authority and the assessee appeared before the assessing authority and claimed that the goods sold by it are exempted from tax in view of the notification no. 1166 dated 10.4.2000 and also claimed relief on account of Inter-State sales made to various government organisations and institutions against the Forms 3D and D.

6. The Assessing Authority, after examining the accounts and details, issued a show cause notice to the assessee proposing to make the best judgment assessment on the basis of an inference that the assessee had effected sales at concessional rate of tax to various organizations against the declaration of form 3D and form D even though the said organizations were not the Government organisations and no benefits of concessional rate of tax could have been claimed by the assessee. The assessing authority further took a view that the goods sold by the assessee are not covered by the notification No. 1166 dated 10.4.2000 and hence the goods of the assessee were liable to be taxed at the rate of 10% as unclassified goods.

7. The assessee replied to the show cause notice and stated that the goods sold by the assessee are fully covered by the notification no. 1166 dated 10.4.2000 and that the assessee had charged and deposited tax at concessional rate on the Intra-State sales as well as Inter-State sales made to various Government Organizations and institutions but claimed that it was exempted under the said notification also.

8. The explanation as submitted by the assessee was not accepted by the assessing authority and assessment orders were passed on 20.2.2004, 17.3.2005 and 30.3.2005 for the Assessment Year 2001-2002, 2002- 2003 and 1998-1999 respectively and the tax was levied under the UP Act and also under the Central Act. The Assessing Authority has accepted books of accounts of the assessee as well as declared turnover but rejected the benefits of declaration Form 3-D/D and on the Intra-State/ inter-state sales made to the Central/ State Government organizations and also treated the goods as unclassified goods, declining it to grant benefit of exemption under notification no.1166 dated 10.4.2000 holding that the assessee is not entitled to get exemption under the aforesaid notification.

9. Thereafter, appeals were filed before the Joint Commissioner (Appeals) and by its common order dated 31.12.2005, the J