Hence the relevant date will be only 5.3.1986 and number 1.11.1985.
1999 1 SCR 340 The following Order of the Court was delivered The appellant companymenced a manufacturing unit with manual labour without getting it registered under the Factories Act or before the Directorate of Industries.
As already pointed out by us, the appellant became an in dustrial unit as defined by the Notification only from 11.9.1986.
Hence, the relevant date for the purpose of granting exemption is 5.3.1986 and number 1.11.1985 as decided by the 2nd respondent and the High Court.
The appellant, however, purchased land and building and started manufacturing unit on a property of its own and at that time it applied for and obtained permanent registration from the Deputy Director of Industries as small scale unit.
Earlier it had purchased raw material and started trial run pursuant to which the first sale was effected on 1.11.1985.
At that time, as the appellant had number invested amounts in excess of Rs.
The actual registration certificate was issued on 11.9.1986 by the Deputy Director of Industries.
Aggrieved by the same, the appellant filed civil miscellaneous writ petition in the High Court.
It got a sales tax registration certificate on 23.11.1985.
3 lakhs, the appellant was entitled to exemption only for a period of four years from the date of first sale, namely 1.11.1985.
Unfortunately, the High Court has overlooked the definition of industrial unit found in the Notification of Exemption dated 26.12.1985 which was passed in supersession of earlier Notification dated 29.1.1985.
The reasoning of the 2nd respondent was that the appellant had on its own showing companymenced trial run, purchased raw material and started production in November 1985 and the first sale was effected on 1.11.1985.
Industrial Unit has been defined in the Notification as follows Industrial Unit means an industrial unit holding permanent registration with the Directorate of Industries, Uttar Pradesh as on small, handloom or handicraft industry or an industrial licence registration granted by the Iron Steel Controller or the Textile Commissioner or the Director, Sugar or the Director General of Technical Development or the Government of India and a registered under the Factories Act, 1948 or established after ob taining a Term Loan from the U.P. Financial Corporation or from a Scheduled Commercial Bank, in the case of units with a capital investment number exceeding three lakh rupees or b registered under the Factories Act, 1948 or having applied for registration under the said Act and deposited the required fee for the purpose, in the case of units other than those referred to above The date of starting production has also been defined in the Notification as follows Date of starting production and new unit shall have the meaning assigned to them in the explanation to Section 4 A of the Uttar Pradesh Sales Tax Act, 1948 There is numberdispute that the appellant got permanent registration with the Directorate of Industries only on 11.9.1986 and became an in dustrial unit as defined by the Notification.
3 lakhs and, therefore, the appellant was entitled to exemption for a period of four years only from 1.11.1985.
By utilising that definition and the last part of the reasoning found in the order of the 2nd respondent, the High Court took the view that the appellant had started production as required by the Notification on 1.11.1985 with a capital investment below Rs.
35 lakhs was sanctioned.
That writ petition was dismissed by the High Court.
Learned companynsel for the respondents also companytends that numbere of the companytentions urged by the appellant in this Court were put forward before the High Court, We are unable to accept this companytention.
That unit started production on 3.3.
On December 6,1986, the appellant applied for exemption under Section 4 A of the U.P. Sales Tax Act, 1948 for short the Act for a period of six years from payment of sales tax under the Notification dated 26.12.1985 stating that the date of first sale was 5.3.1986.
The 2nd respondent issued a sales tax exemption certificate on 25.7.1989 for a period of four years from 1.11.1985.
As stated already, the judgment of the High Court is wholly unsatisfactory and it is number a judgment at all.
1986 and the first sale was effected on 5.3.1986.
The writ petition filed by the appellant before the High Court companytained all the relevant facts and the companytentions.
On that basis, the claim of the appellant for exemp tion for six years from 5.3.1986 was rejected.
49 lakhs in October 1986 of which a sum of Rs.
The appellant had also applied for a loan from the U.P. Financial Corporation for a sum of Rs.
