New unit eligibility under sales tax law extends to different goods manufactured at an existing factory site without separate factory registration.

A dissolved acetylene gas unit was treated as a "new unit" under the U.P. Sales Tax Act because the Explanation to section 4-A covers an industrial undertaking set up on or adjacent to an existing factory where it manufactures goods different from the existing unit. The statutory scheme required registration under the Factories Act, or an application for such registration, but did not insist on a separate and independent registration certificate in every case. As the petitioner had applied for registration and the new plant was endorsed on the existing registration, rejection solely for want of separate registration was unsustainable. The unit was therefore eligible for consideration as a new unit for exemption purposes.

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Issues: Whether the petitioner's dissolved acetylene gas unit was a "new unit" for the purpose of eligibility under the U.P. Sales Tax Act, and whether the absence of a separate registration under the Factories Act justified rejection of the claim for exemption.

Analysis: Under the Explanation to section 4-A, a "new unit" includes an industrial undertaking set up on or adjacent to an existing factory if it manufactures goods different from those produced by the existing unit. The statutory requirement is that the unit be registered under the Factories Act or that an application for such registration be made; the provision does not require a separate and independent registration certificate in every case. The record showed that the petitioner had applied for registration of the new unit and that the Assistant Director of Factories had endorsed the new plant on the existing registration. The existing unit manufactured industrial oxygen and medicinal oxygen, whereas the disputed unit manufactured dissolved acetylene gas, which is different goods. The rejection based solely on the absence of separate registration was therefore unsupported by the statutory scheme.

Conclusion: The rejection of the petitioner's claim on the ground of want of separate registration under the Factories Act was unsustainable, and the petitioner was entitled to consideration as a new unit for eligibility certificate purposes.

Ratio Decidendi: For the purpose of section 4-A, registration under the Factories Act is sufficient for a new unit, and separate registration is not a statutory condition where the unit manufactures different goods from an existing unit.

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