Sales tax incentive claims for building and machinery remanded for fresh consideration, with production breaks open for condonation.

Claims for sales tax incentive relating to a new building and plant and machinery required fresh examination because they had not been conclusively decided on the facts. The building claim depended on whether substantial execution and payment occurred during the scheme period despite the contract being signed earlier, while the machinery claim depended on whether the machinery was first supplied, installed and used at the petitioner's premises rather than being treated as covered merely by an earlier order and part payment by another concern. The matter was remanded to the State Level Committee, and the petitioner was allowed to seek condonation of production breaks before that Committee.

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Issues: Whether the petitioner's claims for sales tax incentive in respect of the new building and plant and machinery required fresh consideration by the State Level Committee, and whether the petitioner could seek condonation of breaks in production while the matter was reconsidered.

Analysis: The claims for the building and plant and machinery were not rejected on a conclusive determination of the facts. The building claim turned on whether substantial execution and payment took place during the operative period of the scheme, notwithstanding that the construction contract was entered into before the scheme commenced. The machinery claim turned on whether the machinery was in fact supplied, installed and used for the first time at the petitioner's premises, and not merely because the initial order and part payment were made by another concern. The question of production breaks also arose under the scheme condition requiring continuous production, but it was left open to be examined by the competent committee upon a proper representation.

Conclusion: The matter was remanded to the State Level Committee for fresh consideration of the petitioner's claims regarding the new building and plant and machinery, and the petitioner was permitted to seek condonation of production breaks before that Committee.

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