Tax concession attached to industrial unit continues for the unexpired period after transfer when operations remain unchanged.

A statutory tax concession linked to a commissioned industrial unit for a fixed five-year period continued for the unexpired term after transfer of the unit. The benefit under section 5CC was treated as attached to the industrial unit, not as ending merely because ownership changed, provided the unit continued unchanged in nature and composition. The transferee, stepping into the shoes of the transferor, could therefore claim the remaining remission period. Earlier cases concerning partnership and proprietary concerns were treated as fact-specific and not controlling on these facts. The revenue challenge failed, and the concessional treatment for the unexpired period was maintained.

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Issues: Whether a transferee-firm could continue to avail the benefit of remission of tax on raw material under section 5CC of the Rajasthan Sales Tax Act, 1954 after transfer of the manufacturing unit before expiry of the five-year benefit period.

Analysis: The benefit under section 5CC attached to the manufacturing unit commissioned within the specified period and was available for a fixed duration of five years. The transferor-firm had already availed the benefit for part of that period, and the unit itself continued without any change in its nature or composition after transfer. The amendment to the notification referring to machinery used under the same or changed ownership did not justify denying the remaining benefit to the transferee, since the transferee stepped into the shoes of the transferor and the statutory benefit was linked to the unit, not to the identity of the owner in a manner that would truncate the remaining period merely because ownership changed before the five years expired. The earlier decisions cited on partnership and proprietary concerns were treated as factually distinguishable.

Conclusion: The transferee-firm was entitled to continue the benefit for the unexpired portion of the statutory period, and the revenue's challenge failed.

Final Conclusion: The common orders allowing the transferee-firm to retain the concessional treatment were upheld and the revision petitions were dismissed.

Ratio Decidendi: Where a statutory tax concession is granted to a commissioned industrial unit for a fixed period, transfer of the unit before expiry of that period does not extinguish the remaining benefit if the unit continues unchanged and the successor merely steps into the shoes of the transferor.

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