1995 (9) TMI 288

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.... (V.B. Joshi, Umesh Bhagwat and Alok Singh, Advocates, with him), for the appellant.   --------------------------------------------------   The judgment of the Court was delivered by   B.L. HANSARIA, J.- These appeals by special leave raise the question of exemption from octroi, inter alia, on initially imported plant and machinery, pursuant to resolution No. 63 of Chinchwad New Township Municipal Council adopted in its meeting held on July 4, 1970. That resolution reading as below permits exemption: "(i) in the first two years of new industrial undertaking, initially imported plant and machinery (including spare and substitute parts) required in the beginning and building materials (i.e.,) iron, steel, cement or ....

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....ence. A perusal of the impugned judgment of the High Court makes this stand on behalf of the appellants abundantly clear inasmuch as the counsel appearing for the appellants in the High Court, Shri C.J. Sawant, had clearly stated that apart from the aforesaid ground, "other contingencies set out in the explanation (sic clarification) are not applicable in case of unit No. 2 (meaning the second unit set up by the respondent-company in whose name new industrial licence had been obtained and plant and machinery had been imported) and in case it is found that unit No. 2 is not formed by reconstruction of business already in existence, then the petitioner-company would be entitled to exemption in respect of payment of octroi duty". 3.. We hav....

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....fication (i) of resolution No. 63 is in pari materia with the language of section 15C which had come up for interpretation in the aforesaid case. The Bench opined that once the new industrial undertaking is separate and independent production unit in the sense that the commodities produced or the results achieved are commercially tangible products and the undertaking carried on separately without complete absorption and losing its identity in the old business, it is not to be treated as being formed by reconstruction of the old business. 5.. This being the legal position, it cannot be held that the unit No. 2 (supra) set up for manufacturing of polyester filament yarn has to be regarded as result of reconstruction of the business already....