TaxTMI 
TaxTMI 
1997 (11) TMI 453
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....ati Roller Flour Mills, carries on business of purchases of wheat and manufacturing and selling atta, maida and suji therefrom. Section 4 of the U.P. Sales Tax Act has empowered the State Government to grant exemption to any dealer from payment of sales tax and purchase tax, if the Government is of the opinion that it is necessary to do so for the purpose of increasing production of goods or for permitting development of industries in the State generally or in any particular district or in any part of a district. The case of the appellant is that it is a new unit recognised by the Government and it has been given an eligibility certificate for a period of six years from August 10, 1983 to August 9, 1989. The appellant has also been given a ....
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.... the manufacture of notified goods. 4.. The assessee's claim for exemption of purchase tax on wheat purchased by it from the open market was rejected by the commercial tax authority on the ground that the exemption was available only if purchases of wheat were made from the FCI. The assessee's appeal to the Tribunal did not meet with any success. The assessee went to the High Court against the order of the Tribunal and at the same time made an application before the Tribunal for rectification of the appellate order dated June 14, 1993. The Tribunal by an order dated February 9, 1994 rectified its appellate order dated June 14, 1993 by upholding the assessee's claim. Thereupon, the Commissioner of Trade Tax made a revision petition to the....
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....tion of the appellant before the High Court as well as before this Court is that the pre-condition of purchase of wheat from the FCI was withdrawn by a subsequent notification dated January 29, 1985. It has been argued that a dealer who held a recognition certificate under section 4-B and an eligibility certificate under section 4-A could claim exemption from purchase tax on the purchase of raw material as well as from sales tax on sale of notified goods manufactured by it. 7.. This contention of the assessee was rightly rejected by the High Court. Section 4-B of the Act provides for special relief to certain manufacturers under special circumstances. Exemption from tax on purchases made by a section of dealers can be granted by the Stat....
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....ion from sales tax as well as purchase tax for the period August 10, 1983 to August 9, 1989. There is also no dispute that atta, maida and suji are notified goods under section 4-B of the Act. The notification dated July 18, 1979 had made it quite clear that a roller flour mill holding recognition certificate would be entitled to exemption from payment of purchase tax on purchase of, inter alia, wheat if it was used by it in manufacture of atta, maida, suji, etc. This proviso has not been done away with by any subsequent notification. The subsequent notifications issued under section 4-A empowers the State Government to exempt the turnover of a dealer in whole or in part from liability to pay tax. But relief from payment of purchase tax cou....