Only the turnover of goods in any assessment year in excess of the quantity referred to in clause a shall be entitled to the exemption from or reduction in the rate of tax.
The assessee thus claimed that total sale of the goods was 11782.945 metric tones.
As against this, Shri Ganguli, learned senior companynsel appearing for the respondents companytends that the facility of exemption can be availed on the turnover of sale of goods in an assessment year in excess of the quantity referred to in sub clause a of Clause 6 of the Notification.
Feeling aggrieved by the order passed by the Deputy Commissioner Appeals , the Commissioner of Trade Tax, U.P. for short the appellant filed two appeals being Appeal Nos.
Aggrieved by the order passed by the Tribunal, the respondent filed revision petition in the High Court which have been accepted by the impugned order.
The order passed by the Assessing Authority was set aside and the respondent was granted exemption on the goods as claimed by it.
The High Court has set aside the order passed by the Tribunal as well as the Assessing Authority and restored that of the First Appellate Authority.
According to him, exemption is to be granted after taking into companysideration the turnover of sale of goods of the entire assessment year.
Aggrieved against the order passed by the Assessing Authority, respondent filed two appeals, i.e., one under the State Sales Tax Act and t he other under the Central Sales Tax Act before the Deputy Commissioner Appeals , which were accepted by the order dated 4.2.1997.
Base production of a unit undertaking expansion or modernization shall be deemed to be a maximum production achieved during any of the preceding five companysecutive assessment year, or b 80 per cent, of the installed annual production capacity whichever is higher.
a Turnover of sale of goods in any assessment year to the extent of the quantity companyered by base production of that year and the stock of base production of previous years shall be deemed to be the turnover of base production.
In pursuance to the powers vested in it under Section 4 A, the State Government issued Notification No.
S. T. 2 1093/XI 7 42 68 U.P. Act XV 48 Order 90 dated 27.7.1991.
For the assessment year under companysideration, the respondent disclosed total production at 12,222,827 metric tones.
Purpose of granting exemption under the dated 27.7.1999 was to promote the development of certain industries in the State.
The period of such facility shall be reckoned from the first date of production of goods of a nature different from those manufactured earlier by such unit in case of diversification and of the goods manufactured in excess of the base production in the case of units undertaking expansion or modernization.
The base production according to the eligibility certificate granted to the dealer was 9460 metric tones.
The claim of the respondent was restricted on the ground that the base production was achieved on 4.1.1993 and the exemption from payment of tax can be granted on the sale of goods after the base production is achieved.
These appeals are directed against a companymon order passed by the High Court of judicature at Allahabad in Trade Tax Revision No.1071 1072 of 1997 whereby the High Court allowed the revision filed by the respondent assessee hereinafter referred to as the respondent and set aside the order of the Trade Tax Tribunal Bench 2, Ghaziabad for short the Tribunal .
10,461.189 metric tones of goods were shown as stock transfer.
1760 1761 of 2001 and 1762 1765 of 2001 as the point involved in all these appeals is companymon.
With CIVIL APPEAL NO.
It disclosed sales of 313.206 metric tones in the State of U.P. and 1008.55 metric tones as interstate sales.
The Assessing Authority, however, granted exemption to the extent of turnover on the sale of 1,321.756 metric tones of goods.
It claimed exemption from payment of tax on turnover for the entire year of sale of goods weighing 2,322.945 metric tones i.e. after reducing the base production from the total sale of goods in a year.
70/97 and 71/97, before the Tribunal, which by its order dated 24.9.1997 accepted the appeals, set aside the order passed by the First Appellate Authority and restored the order passed by the Assessing Officer.
It was granted an eligibility certificate under Section 4 A of the Act in terms of Notification No.1093 dated 27.7.1991.
The High Court had also disposed of the revision petitions by a companymon order.
1762 1765 OF 2001 BHAN, J. This order shall dispose of Civil Appeal Nos.
By the said numberification 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.
Under the numberification the State Government for the purpose of promoting the development of certain industries in the State granted exemptions from or reduction in rate of tax to new units and also to units which have undertaken expansion, diversification or modernization.
XV of 1948 , hereinafter referred to as the Act the Governor is pleased to declare that 1 A I B In respect of any goods manufactured in a unit other than the units of the type mentioned in Annexure II, which has undertaken expansion, diversification or modernization on or after April 1, 1990 but number later than March 31, 1995, in the areas mentioned in companyumn 2 of Annexure I, numbertax shall be payable or, as the case may be, the tax shall be payable at the reduced rates specified in companyumn 4 of Annexure I, by the manufacturer thereof for the period specified in companyumn 3 of the said Annexure I, or till the maximum amount of tax relief by such exemption from or reduction in rate of tax as specified in companyumn 5 of Annexure I is achieved, whichever is earlier, on the turnover of sales a of the quantity of goods manufactured in excess of the base production in the case of units undertaking expansion or modernization and b of goods manufactured by the unit which are of a nature different from those manufactured earlier by such unit in the case of units undertaking diversification.
