Exemption on sales above base production must be computed for the entire assessment year, not only after base production is reached.

Exemption under section 4A of the U.P. Trade Tax Act, 1948 and the linked notification had to be computed by reference to the whole assessment year, because clause 6(a) treats turnover up to base production as base production and clause 6(b) grants relief only on turnover beyond that level. Read with the assessment-year framework and rule 41(8), the entitlement cannot be split from the date base production is first achieved. The exempt turnover is therefore the sales turnover for the entire assessment year in excess of base production, not only sales made after base production was crossed.

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Issues: Whether, for claiming exemption under section 4A of the U.P. Trade Tax Act, 1948 and the relevant exemption notification, the turnover of sales in excess of base production is to be determined for the whole assessment year or only after the date on which base production is achieved.

Analysis: The exemption scheme under section 4A and the notification was intended to promote industrial development by granting relief on sales of goods manufactured in excess of base production. Clause 6(a) of the notification treats the turnover of sales in an assessment year to the extent covered by base production as turnover of base production, while clause 6(b) grants exemption only on turnover in excess of that quantity. Read with the concept of assessment year and the return-and-assessment mechanism under rule 41(8), the entitlement has to be worked out with reference to the entire assessment year, not merely from the date on which base production is first crossed during the year.

Conclusion: The exemption is to be computed on the turnover of sales for the entire assessment year in excess of base production, and not only on sales made after the date on which base production is achieved.

Ratio Decidendi: Where an exemption notification links relief to sales in excess of base production during an assessment year, the entitlement must be determined on the basis of the whole assessment year and not by splitting the year from the date when base production is first attained.

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