TaxTMI 
TaxTMI 
1996 (3) TMI 419
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.... granting exemption from payment of sales tax to various newly set up industrial undertakings. (1) For the facts see [1977] 40 STC 455 (All). The notification was to the following effect: "Whereas, it has been brought to the notice of State Government that the seven industrial units mentioned in Schedule below have started the manufacture of goods mentioned in column II of the Schedule with effect from the date noted against each; And, whereas, the State Government is of opinion that it is necessary so to do for increasing the production of the said goods manufactured by the said industrial units; Now, therefore, in exercise of the powers under section 4-A of the U.P. Sales Tax Act, 1948 (U.P. Act No. 15 of 1948), the Governor is pleased to declare that the turnover in respect of the said goods manufactured by the said industrial units shall be exempt from payment of sales tax for a period of three years with effect from the date of publication of this notification in the official gazette. SCHEDULE Sl.No Name of the Industrial units Goods manufactured Date of starting production Column I Column II Column III 1. ... ... ......
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.... reference to goods or a class or category of goods, but with reference to an industrial unit producing them and their manufacture and sale within a particular period. In the instant case, the exemption has not been granted to the goods generally. Specified goods (mirrors and toughened glass) produced by a specified company have been exempted from payment of sales tax for a specified period of time. It is not the case of the assessee that mirrors and toughened glass have been generally exempted from payment of tax. Therefore, in view of the ratio laid down in the aforesaid case of Commissioner of Sales Tax v. Pine Chemicals Ltd. [1995] 96 STC 355 (SC); (1995) 1 SCC 58, it must be held that the assessee will not be entitled to get benefit of section 8(2A) of the Central Sales Tax Act in the facts of this case. On behalf of the respondent, it has been contended by Mr. Raja Ram Aggarwal that sub-section (2A) of section 8 of the Central Sales Tax Act was amended with effect from April 1, 1973. He drew our attention to the language of the section before its amendment, which was as under: "8(2A). Notwithstanding anything contained in sub-section (1) or sub- section (2) if under ....
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....hen the sale or purchase of goods shall not be deemed to be exempted from tax generally. In the instant case, the exemption has been granted only in respect of specified goods produced by certain specified newly set up undertakings mentioned in the notification. The benefit of exemption will be available to these new undertakings for a period of three years. In other words, at a specified stage of development of these industries they will be given a special benefit which will not be available generally to other industries producing goods of similar nature. Therefore, we fail to see how the aforesaid case of Commissioner of Sales Tax v. Pine Chemicals Ltd. [1995] 96 STC 355 (SC); (1995) 1 SCC 58 can be distinguished on the ground that it was a decision given under post-amendment law. In fact, it does not appear that by the amendment of sub-section (2A) of section 8 any change has been brought about in respect of meaning or the concept of sale or purchase of goods exempt from tax generally. We were also referred to a decision of this Court in the case of Indian Aluminium Cables Ltd. v. State of Haryana [1976] 38 STC 108; (1976) 4 SCC 27. In that case the question was whether....
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....s with what has to be excluded from the taxable turnover of the dealer. Both the sections deal with goods which do not suffer from sales tax. Section 8(2A) of the Central Act exempts goods from inter-State sales tax where a tax law of the State has exempted them from sales tax. The explanation to section 8(2A) of the Central Act takes away the exemption where it is not general and has been granted in specified circumstances or under specified conditions. The provisions contained in section 5(2)(a)(iv) of the State Act exclude sales which are made under specified circumstances or specified conditions. The specified circumstances are that the sale must be to an undertaking engaged in supplying electrical energy to the public under a licence or sanction granted under the Indian Electricity Act, 1910. The specified condition is that the goods purchased by the undertaking must be used for the generation or distribution of electrical energy. If the circumstances do not exist or if the conditions are not performed then the sales of goods cannot be exempted from tax. General exemption means that the goods should be totally exempt from tax before similar exemption from the levy of Central s....