TaxTMI 
TaxTMI 
1989 (1) TMI 313
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....rs, pump-sets and their parts. It applied for exemption from sales tax in respect of the goods manufactured by it in terms of a notification issued by the State Government on September 30, 1982, under section 4-A of the Uttar Pradesh Sales Tax Act, 1948 (hereinafter called "the Act"). This application was rejected by a Division Level Committee by an order dated February 9, 1987, and a further review application was also dismissed on October 27, 1987. Thereupon the appellant filed a writ petition which was also rejected by the High Court by a short order dated December 7, 1987. Aggrieved by this denial of the exemption, which it claims it is entitled to, the appellant has preferred this appeal. Section 4-A of the Act reads as under: ....
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...., accessories or components not already used or acquired for use in any other factory or workshop in India but does not include any factory or workshop established on the site of an existing factory or workshop manufacturing the same goods or any addition to or extension of an existing factory or workshop; and (ii) 'date of starting production' means the date on which any raw material required for use in the manufacture or packing of the specified goods is purchased for the first time or the date of installation of power connection, where needed, whichever is later." In pursuance of the above section, the State Government published a scheme for the grant of exemption from sales tax to certain industrial units in the State. The scheme,....
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....trial Estate of Roorkee endorsed the following recommendation on the application: "...........I have checked with the use of power and other sources that the unit started actual production from December 4, 1982 and the production made is self-manufactured and is within the prescribed production capacity. I am fully satisfied with the facts produced by the unit and I recommend that this unit is eligible to get exemption from sales tax/inter-State sales tax.........with effect from date of production commencement for 5-6-7 years under section 4-A of the Sales Tax Act vide G.O. No. 8244-Bha/18-11-231(A) Bha/39, dated September 30, 1982." The difficulty in the appellant's way appears to have been created by a certificate which had been pr....
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.... share in M/s. Krishna Trading Company also. No purchase of raw material was declared by M/s. Krishna Trading Company in the year 1981-82, and therefore, the certificate of trial production issued by M/s. Krishna Trading Company on December 4, 1981 is baseless and untrue. In joint inquiry report it is also clear that your unit has purchased from M/s. Krishna Trading Company, kupla, etc., of Rs. 69,000 on May 21, 1981, whereas M/s. Krishna Trading Company have declared sale of Rs. 13,035 only in 1981-82 as per file of the Sales Tax Department. In the joint inquiry report it is also mentioned that your unit got electricity on November 21, 1982 and on inquiry the unit informed that the trial production was done with the help of a generator. Yo....
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.... one, it does not affect the appellant's claim. Assuming that the Committee has come to the conclusion that the production on December 4, 1981 was conducted not by M/s. Krishna Trading Company but by the appellant itself, the fact still remains that what had happened on that date was only trial production. The mere fact that a certificate by M/s. Krishna Trading Company is disbelieved cannot lead to the conclusion that the assessee had produced goods on December 4, 1981. If one is to go by the definition contained in the explanation to section 4-A for determining when the production started, one has to concentrate on the date of purchase of raw materials or on the date on which the electricity was brought into use for commercial production.....