Gross value of fixed capital assets must be computed at depreciated value on rehabilitation date, not original purchase cost.

Section 43 of the West Bengal Sales Tax Act, 1994 required the gross value of fixed capital assets of a rehabilitated or revived sick industrial unit to be taken as the value existing on the date of rehabilitation or revival. For land, buildings, plant and machinery already in existence, that meant depreciated value on the relevant date; only newly purchased and installed plant and machinery could be taken at actual cost. The unit's own return and revision materials were consistent with depreciated value, and the statutory language did not support substituting original purchase price. The challenge to the valuation therefore failed.

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Issues: Whether, for grant of remission under section 43 of the West Bengal Sales Tax Act, 1994, the gross value of fixed capital assets of a rehabilitated or revived sick industrial unit had to be taken at the depreciated value as on the date of rehabilitation or revival, or at the original purchase cost.

Analysis: Section 43 and its Explanation required the gross value of fixed capital assets to be determined with reference to the value as it stood on the date of rehabilitation or revival. For existing land, buildings, plant and machinery, that value was the depreciated value reflected on the relevant date, while only newly purchased and installed plant and machinery could be taken at actual cost. The petitioner's own return and revision materials proceeded on depreciated value, and the language of the provision did not justify substituting the original purchase price. The reliance placed on liberal construction and on the cited authorities was held to be inapposite on the facts and the statutory language.

Conclusion: The gross value of fixed capital assets had to be computed on depreciated value as on the date of rehabilitation or revival, not on original purchase cost, and the challenge to the valuation failed.

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