Exemption under section 4A applies only to sales within the notified period, not to post-expiry sales of earlier manufactured stock.

Section 4A of the U.P. Trade Tax Act, 1948 grants exemption only on turnover of sales made during the notified exemption period. Goods manufactured within that period but sold after its expiry do not retain exemption merely because production occurred earlier. The statutory wording linking relief to sales "during such period" shows that the benefit is confined to sales within the notified window, and the notification did not extend it to closing stock sold later. Accordingly, post-expiry sales of such goods were held taxable and the exemption claim failed.

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Issues: Whether goods manufactured during the exemption period under section 4A of the U.P. Trade Tax Act, 1948 but sold after expiry of that period remained exempt from tax.

Analysis: Section 4A grants exemption in respect of the turnover of sales of specified goods during the notified period. The statutory language, especially the reference to "turnover of sales" and the limitation of exemption "during such period", indicates that the benefit is confined to goods manufactured and sold within the exemption period. The notification applied to the assessee also linked exemption to the turnover of sales for the specified period, showing that the legislative intent was not to extend the exemption to stock manufactured during the period but sold after its expiry.

Conclusion: The goods sold after expiry of the exemption period were not entitled to exemption. The issue is decided against the assessee and in favour of the Revenue.

Final Conclusion: The revision was allowed and the Tribunal's view granting exemption on post-expiry sales of closing stock was set aside.

Ratio Decidendi: Exemption under section 4A of the U.P. Trade Tax Act, 1948 applies only to sales made within the notified exemption period and does not extend to goods sold after that period merely because they were manufactured earlier.

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