B. P. JEEVAN REDDY, CJ.

These revisions under section 11 of the U. P. Sales Tax Act are preferred by the Commissioner, Sales Tax, Lucknow, against the judgment and order of the Sales Tax Tribunal, Lucknow, allowing the appeals preferred by the respondent-assessee.

The respondent-assessee, M/s. Dunlop India Ltd. , is a registered dealer under the U. P. Sales Tax Act as well as under the Central Sales Tax Act. It deals in tyres of motors, trucks, scooters and cycles, etc. For the assessment year 1975-76 and 1976-77 it submitted its return disclosing the taxable turnover at Rs. 8,90,93,957. 11 and Rs. 9,20,18,922. 23 respectively. It also deposited the requisite amount of tax. The assessing authority, however did not agree with the assessees contention that the tyres and tubes sold by it to dealers holding recognition certificates were exempt from sales tax during the said assessment years. It also did not accept the assessees plea that cycle rims were iron and steel as defined under section 14 of the Central Sales Tax Act and, therefore, subject to the ceiling prescribed in the said section. On this basis the assessing authority enhanced the taxable turnover for both the years against which the assessee filed appeals before the Deputy Commissioner (Appeals) which were dismissed. The assessee then carried the matter in further appeal to the Tribunal. The Tribunal did not agree with the petitioners contention that cycle rims were iron and steel within the meaning of section 14 of the Central Sales Tax Act and accordingly rejected that contention. But so far as the other contention is concerned it accepted the same and it is only that aspect which is relevant in these revisions.

Section 4-B of the U. P. Sales Tax Act provides a kind of relief to certain manufacturers. It is not necessary to notice the entire section. It will be sufficient if we notice clause (a) to sub-section (1) and sub-section (2) which only are relevant for our purpose. They read as follows :

" Section 4b. Special relief to certain manufacturers.- (1 ). . . . . . . . .

(a) Where any goods liable to tax under sub-section (1) of section 3-D are purchased by a dealer who is liable to tax on the turnover of first purchases, under that sub-section or where any goods are purchased by any dealer in circumstances in which such a dealer is liable to purchase tax in respect thereof under section 3-AAAA and the dealer holds a recognition certificate issued under sub-section (2) in respect thereof, he shall be liable in respect of those goods to tax at such concessional rate, or be wholly or partly exempt from tax, whether unconditionally or subject to the conditions and restrictions specified in that behalf, as may be notified in the Gazette by the State Government in that behalf;

(a-1) Where any declared goods liable to tax under sub-section (1) of section 3-D are sold or supplied by a dealer, who is the first purchaser thereof, to another dealer, holding a valid recognition certificate issued under sub-section (2) in respect thereof, the dealer who made the first purchase shall in respect of such purchase and subject to such conditions and restrictions as may be specified by notification in that behalf, be exempt from tax or be liable to tax at such concessional rate as may be notified by the State Government :

(2) Where a dealer requires any goods, referred to in sub-section (1) for use in the manufacture by him, in the State of any notified goods, or in the packing of such notified goods manufactured or processed by him, and such notified goods are intended to be sold by him in the State or in the course of inter-State trade or commerce or in the course of export out of India, he may apply to the assessing authority in such form and manner and within such period as may be prescribed, for the grant of a recognition certificate in respect thereof; and if the applicant satisfies such requirement and conditions as may be prescribed, the assessing authority shall gran

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