TaxTMI 
TaxTMI 
1992 (2) TMI 317
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....n after hearing both sides. The petitioners in these appeals have filed the special leave petition against the order of the Allahabad High Court. The petitioners belong to a re-established small-scale industrial unit for manufacturing cycle stands and carriers during the year 1984-85. They applied for power connection in December, 1984, but it was sanctioned on 19th January, 1986. Meanwhile the petitioners, however, started production manually with effect from 1st March, 1985. They effected their first sale of the manufactured goods on 30th March, 1985. It is their case that they purchased a diesel unit and installed it on 4th March, 1985 According to them the total investment including the cost of diesel unit was more than Rs. 3,00,000 ....
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....mencement of the period of exemption. Having thus found, the High Court, however, was not prepared to accept the petitioners' plea that the capital investment in the unit was more than Rs. 3,00,000 during the period between 1st March, 1985, i.e., the date of starting production, and 30th March, 1985, i.e., the date of first sale. In the result, it was declared that the petitioners were entitled for exemption only for a period of three years from the date of first sale, namely 30th March, 1985, in view of section 4-A of the Act and the relevant notifications. The learned counsel for the petitioners contended that when once it is accepted that the date of first sale is 30th March, 1985, then the exemption should be on the basis of the capi....
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....stment on 30th March, 1985; was it less than Rs. 3,00,000 or more. Column 3 of the Table appended to the Notification dated 29th January, 1985, issued under section 4-A of the Act shows that in respect of the units mentioned therein in serial No. 3, the exemption should be for three years if the total capital investment does not exceed Rs. 3,00,000 and if it exceeds Rs. 3,00,000 it should be five years. The petitioners' case throughout has been that they purchased and installed a diesel unit on 4th March, 1985, amounting to Rs. 72,800 and that since the same is not in dispute at all, it must be held that the cost of the diesel unit should be included in the capital investment, and then the total capital investment would be more than Rs. ....
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....nd that the date of starting production in the petitioners' unit is 1st March, 1985 and in view of sub-section (1) of section 4-A, the date of the first sale, i.e., 30th March, 1985, should be taken as the date of commencement of the period of exemption, the same falling within six months of the date of starting production. " (Emphasis Here italicised. supplied). Therefore, 30th March, 1985, should be the date of commencement of the period of exemption. In the review petition filed before the Joint Director of Industries, no doubt, it is clearly mentioned that on 19th April, 1986, the capital investment was Rs. 5,26,273 and that the Sales Tax Officer cannot reduce the capital investment by excluding the cost of diesel set. But in the ....
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....aid that this aspect was not an issue before the High Court but the same lost its significance in view of the larger claim made by the petitioners that the exemption should be from 20th May, 1986. The learned counsel for the State, however, submits that the matter may be remanded. We do not think it is necessary to do so in view of the cogent and clear material, which cannot be controverted. Before proceeding we may extract the order which was impugned before the High Court: "Letter No. 8971 DS/8/Sales Tax/88-89 Office Joint Director Industries (D.S) Dated: 29th December, 1988 M/s. Vijay Enterprises, 93-A, Co-operative Ind. Estate Kanpur. Kindly refer to your letter dated 16th June, 1988 which is on the subject of re....