During the assessment year 1992 93 total sales made by the assessee from 01.04.1992 to 31.03.1993 was 382.125 MT.
Against Tribunals order, assessee moved the High Court in revision.
It was granted eligibility certificate under Section 4A of the Act under Notification No.
Aggrieved by the orders of the Deputy Commissioner Appeals , assessee filed appeals before the Trade Tax Tribunal, Ghaziabad in short the Tribunal which were partly allowed vide order dated 23.07,1996.
By the said Notification exemption from payment of tax or reduction in rate of tax was granted to new units as also to the units which had undertaken expansion, diversification or modernization.
In the said case, this Court inter alia observed as follows Purpose of granting exemption under the Notification dated 27.7.1999 was to promote the development of certain industries in the State.
Tribunal held that base production has been achieved on 23.09.1992 and, therefore, whatever the sale was made by the applicant upto 23.09.1992 shall number be entitled for exemption and the applicant was entitled for exemption only after 23.09.1992 on the production in excess of the base production.
Applicant was engaged in the business of manufacture of bulk drugs.
thus, the assessee was entitled for the benefit of exemption under Section 4 A of the Act in assessment year on the production exceeding the base production of 172.8 MT.
Stand of the revenue, on the other hand, was that such interpretation goes against the very object of Section 4 A of the Act.
both within the State of the UP as well as outside the State of UP including the central sales.
The exemption was granted to the extent of 125 of the fixed capital investment, invested by the assessee in the extension on the turnover of the goods manufactured in excess of the base production in an assessment year.
It claimed that during the assessment year in dispute, returns had been filed disclosing the total sales made by it and had claimed exemption from payment of tax both under the Act and Central Act only to the extent of sales made by it to the extent of 140.75 MT.
Deputy Commissioner Appeals held that the exemption cannot be claimed from payment of tax upto the period till the base production turnover has number been achieved.
during the whole year.
Brief facts giving rise to the present revisions are that the assessee is a Private Limited Company incorporated under the Companies Act, 1956 having its registered office at B 67, South Extension, Part II, New Delhi, and factory at Plot No.34 A/2, Site No.4, Sahibabad in the district Ghaziabad.
Aggrieved by the order of the assessing authority, assessee filed appeals before Deputy Commissioner Appeals , who vide order dated 31.07.1995 dismissed both the appeals.
ST II 1093/XI 7 42 86 U.P. Act XV/48 Order 91, dated 27.7.1991 and Rule 41.
The said case was relied upon by the High Court in support of its companyclusions which are challenged in the present appeal.
Thus, according to the assessee, it was entitled for the benefit of exemption under Section 4 A of the Act on the turnover of the production of 209.325 MT.
Stand of the Assessee before the High Court was that such turnover has to be taken for the whole of the assessment year and if it is found that the Unit undertaking expansion has exceeded the base production turnover in the whole of the assessment year, then the Unit shall be entitled to avail the benefit of exemption from payment of tax in respect of the turnover which is in excess of the base production for the whole of the assessment year which has to be declared under Rule 41 8 of the Uttar Pradesh Trade Tax Rules, 1948 in short the Rules .
The base production was fixed at 172.8 MT.
Challenge in this appeal is to the order passed by a learned Single Judge of the Allahabad High Court disposing of two revision petitions, i.e. Trade Tax Revision No.723 of 1996 and Trade Tax Revision No.724 of 1996 preferred by the respondent hereinafter referred to as the Assessee under Section 11 of the Uttar Pradesh Trade Tax Act, 1948 in short the Act .
ST II 1093/XI 7 42 86 UP Act XV/48 Order 91, dated 27.07.1991 in respect of the expansion undertaken by the assessee to manufacture paracetamole, which is bulk drug.
7291 of 2006 Dr. ARIJIT PASAYAT, J. Leave granted.
Arising out of S.L.P. C No.
Assistant Commissioner, Trade Tax Ghaziabad, vide his assessment order dated 01.03.1995 accepted the books of account and the disclosed turnover but restricted the claim of exemption to the extent of 70.325 MT instead of 140.75 MT.
The revision petitions related to the assessment year 1992 93 in respect of assessments framed under the Act and the Central Sales Tax, 1956 in short the Central Act .
He was of the view that exemption was available only after the date on which base production is achieved, i.e. if the base production is achieved in third month then the applicant would be entitled for exemption from the fourth month.
By the impugned order, the High Court held that the turnover of the base production in accordance with Clause 6 of the Notification No.1093 dated 27.07.1991 hereinafter referred to as the Notification has to be taken up for the whole of the assessment year.
