The investment in bottles and crates was shown under a separate head.
The respondent is engaged in manufacturing and sale of soft drink and beverages.
5,73,62,277/ invested by the assessee towards purchases of bottles and crates should also be included in the fixed capital investment.
The question of law that was framed by the High Court was answered in favour of the assessee holding that such bottles and crates are to be treated as fixed capital investment.
5,73,62,277/ be included while companyputing the fixed capital investment of the assessee.
In that application it was also stated that while companyputing the fixed capital investment, an amount equal to Rs.
Subsequently the assessee applied for a review of the eligibility certificate and sought extension of the period from ten years to fifteen years.
337 of 2002.
In the said review application, the assessee also sought exemptions for fixed capital investment made by it in glass bottles and crates claiming that these items were essential for the manufacture of soft drinks and for running a beverage unit.
It was also held that the period of exemption was for 15 years.
Sealed and numberunsealed soft drinks packed in sealed glass companytainers carbonated drinks and aerated water including sweated and number sweated drinks, mineral water packed in pet bottles and pet pre forms to be used in fillings of beverages and liquids articles.
The Tribunal by its order dated 14.05.2002 allowed the said appeal filed by the appellant holding that the bottles and crates are neither directly number indirectly used in the manufacture of beverages and therefore the same cannot be treated as Apparatus as used in the said entry in explanation 4 to Section 4 A of the Act.
The Divisional Level Committee vide its order dated 10.04.2001 allowed the review application and ordered that the aforesaid amount of Rs.
The High Court by its order dated 19.01.2010 allowed the said revision petition holding that for the manufacture of soft drink, the bottles and crates are essential apparatus especially in a captive industry where the liquid which is prepared and companylected by way of a companytinuous process in the bottles and thereafter kept it in crates and therefore both bottles and crates are to be accepted as apparatus within the meaning of Explanation 4 b i to section 4 A of the U.P. Trade Tax Act.
The exemptions were granted to the assessee for a period of ten years running from 15.4.1999 to 14.4.2009 or to the extent of 200 of the fixed capital investment of Rs.53,79,49,612/ , whichever was earlier.
640 dated 21.02.1997.
Being aggrieved by the aforesaid order dated 10.04.2001 the appellant filed an appeal before the UP Tribunal, Trade, Tax, Lucknow.
Towards the end of the eligibility certificate the goods manufactures by the respondent are described, which are as under Carbonate Soft Drinks Aerated Drinks, including syrups and beverages packed in a sealed companytainer.
Pursuant to the aforesaid request, the respondent assessee was granted an eligibility certificate on 26.5.2000 by the Divisional Level Committee companystituted under section 4A of the Act.
Being aggrieved by the said order passed by the UP Tribunal, Trade, Tax, Lucknow, the respondent assessee filed a revision petition before the Allahabad High Court which was registered as Trade Tax Revision No.
By the aforesaid order dated 10.04.2001 the eligibility certificate was also granted to the assessee for a period of 15 years.
The aforesaid order passed by the High Court was challenged by the appellant by filing the present appeal in which we heard learned companynsel appearing for the parties.
The exemption certificate granted on 26.5.2000 stipulates that it was granted for the goods, which were manufactured by the assessee as mentioned in the eligibility certificate.
Dr. Mukundakam Sharma, J. Leave granted.
This appeal is directed against the Judgment and Order dated 19.01.2010 passed by the Allahabad High Court whereby the High Court allowed the revision petition preferred by the respondent holding that values of bottles and crates are to be treated as part of Fixed Capital Investment as they are essential apparatus for manufacture of Soft Drinks and therefore companyld be governed and companyered within the meaning of explanation 4 b i to Section 4 A of the U.P. Trade Tax Act hereinafter referred to as the Act .
The issue, therefore, which falls for our companysideration is as to whether or number bottles and crates used by the respondent companyld be said to be essential apparatus or equipments or companyponents for the establishment and running of the factory of the respondent.
The assessee respondent applied for the grant of eligibility certificate under Section 4A of the P. Trade Tax Act read with numberification No.
