Levy of Trade Tax on Purchase Or Sale of Certain Goods

Levy of trade tax on purchase or sale of certain goods (1) Except as provided in sub-section (2), there shall be levied and paid for each assessment year or part thereof, a tax on the turnover, to be determined in the prescribed manner
(a) of first purchases of opium, at such rate not exceeding thirty five per cent;
(b) of first purchases of such other goods at such rate not exceeding
(i) the maximum rate for the time being specified in section 15 of the Central Sales Tax Act, 1956 in respect of goods declared by section 14 of that Act to be of special importance in inter-State trade or commerce, and (ii) twenty per cent, in respect of other goods, and with effect from such date, as the State Government may, by notification in the Gazette, specify in relation to purchases made within Uttar Pradesh by a dealer (whether on his own account or on account of anyone else), or through a dealer acting as a purchasing agent:
PROVIDED that the State Government may, by notification modify the point of tax on the turnover in respect of any such goods.
Explanation I: For determining the turnover liable to tax under this sub-section the amounts for which goods are purchased by one registered dealer from another registered dealer shall be deducted from his gross turnover only if the purchase in question is proved not to be the first purchase.
Explanation II: For the purposes of this sub-section, in relation to purchases of f oodgrains in pursuance of any order made under section 3 of the Essential Commodities Act, 1955 including any purchase in excess of the levy share, the purchase first made by a dealer from the State Government or its purchasing agent shall be the first purchase of such foodgrains and the tax shall accordingly be levied at that point on such dealer.
(2) Where in respect of any goods notified under sub-section (1), the purchaser whether on his own account or on account of anyone else, is a person other than a registered dealer, there shall be levied and paid, for each assessment year or part thereof, a tax on the turnover to be determined in the prescribed manner, of sale of such goods by the dealer who sells the goods or through whom the good s are sold to such purchaser, and the rate of tax shall be the same as notified under sub-section (1).
(3) Where taxis payable and has been so paid under sub-section (1) or sub-section (2) as the case may be, by a commission agent, on any turnover of sales or of purchases on behalf of his principal, the principal shall not be liable to pay the tax in respect of the same turnover.
(4) [Omitted, w.e.f. 1-12-1998] (5) The provisions of sub-section (4) of section 3 and of section 18 shall mutatis mutandis apply in relation to the tax payable under this section.
(6) Where any goods in respect of which tax is levied under any other section are notified under this section, or where any goods notified under this section are denotified and tax in respect thereof is levied under any other section, during the course of any assessment year, the tax payable by a dealer shall be computed as follows, that is to say
(a) for the period the goods are subject to liability to tax under this section, on the turnover of purchases or sales thereof as the case may be; and (b) for the period the goods are subject to liability to tax under any other section, on the turnover of sales thereof.
(7) (a) Every purchase within Uttar Pradesh by a dealer either directly or through another, whether on his own account or on account of anyone else, shall, for the purposes of sub-section (1), be deemed to be the first purchase, unless the dealer proves otherwise to the satisfaction of the assessing authority after having furnished such declaration or certificate, obtained from the selling dealer, in such form and manner and within such period, as may be prescribed.
(b) Every sale within Uttar Pradesh by a dealer, either directly or through another, whether on his own account or on account of anyone else, shall, for the purposes of sub-section (2), be deemed to be a sale to a person other than a registered dealer, unless the dealer selling the goods proves otherwise, to the satisfaction of the assessing authority after having furnished such declaration or certificate, obtained from the purchaser of such goods, in such form and manner and within such period, as may be prescribed. (8) Every notification made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature, while it is in session, for a total period of not less than fourteen days, extending in its one session or more than one successive sessions, and shall, unless some later date is appointed, take effect from the date of its publication in the Gazette, subject to such modification or annulments as the two Houses of the Legislature may during the said period agree to make; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done thereunder except that any imposition, assessment, levy or collection of tax or penalty shall be subject to the said modification or annulment.
Explanation I: For the purposes of this Act, the following goods shall be deemed to be different from each other, namely
(a) Khandsari molasses, including sheera-sayar, sheera-galawat and sheera-salawat;
(b) Rab, including rab-sayar, rab-galawat and rab-salawat;
(c) Gur-lauta and gur-raskat;
and accordingly, nothing in this section shall be construed to prevent the imposition, levy or collection of tax under section 3A in respect of any one of the said goods merely because tax has been imposed, levied or collected under this section in respect of any other of them, or vice versa.
Explanation II: For the purposes of assessment relating to any period commencing on October 1,1964 and ending with November 14,1971, split or processed foodgrains, cereals or pulses shall be deemed to be different from unsplit or unprocessed foodgrains, cereals or pulses and accordingly, nothing in this section shall be construed to prevent imposition, levy or collection of tax in respect of the first purchase relating to such period, of split or processed foodgrains, cereals or pulses merely because tax has been imposed, levied or collected earlier in respect of such foodgrains, cereals or pulses in their unsplit or unprocessed form.