Exemption period under trade tax law turns on total unit investment, and orders fail when the statutory minimum is exceeded.

For exemption under section 4-A(3) of the U.P. Trade Tax Act, 1948, the relevant investment is to be assessed on the total value of the land, building, plant and machinery connected with the unit. On the facts stated, the land value together with the admitted investment in the building and plant and machinery exceeded the statutory minimum of Rs. 3 lakhs, so the view that the investment was below threshold could not be sustained. An order reducing the exemption period cannot stand where the unit's total qualifying investment crosses the prescribed minimum.

---

---

Issues: Whether the reduction of the exemption period under section 4-A(3) of the U.P. Trade Tax Act, 1948 was invalid on the ground that the unit's total investment exceeded the prescribed minimum of Rs. 3 lakhs.

Analysis: The Tribunal's finding that the land on which the unit was set up belonged to the Hindu undivided family was based on evidence and was not interfered with. Even on the assumption that only the partners' share in the family property could be taken into account, the value of the land together with the admitted investment in the building and plant and machinery exceeded Rs. 3 lakhs. The Commissioner's view that the investment was below the statutory minimum therefore could not be sustained.

Conclusion: The order reducing the exemption period was not valid, and the challenge to it failed.

Final Conclusion: The revision was dismissed and the Commissioner's order could not be upheld.

Ratio Decidendi: For determining entitlement to exemption under section 4-A(3) of the U.P. Trade Tax Act, 1948, the relevant investment is to be assessed on the basis of the total value of the land, building, plant and machinery connected with the unit, and an order reducing the exemption period cannot stand where that total exceeds the statutory minimum.

---