2006 (8) TMI 306

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....05] 141 STC 207 (All) [App]. Civil Appeals Nos. 1760, Civil Appeals Nos. 1761 of 2001, Civil Appeals Nos. 1762, Civil Appeals Nos. 1763, Civil Appeals Nos. 1764, Civil Appeals Nos. 1765 of 2001, A.K. Ganguli, Senior Advocate (A.T. Patra, Ramesh Singh, Nipun Malhotra for M/s. O.P. Khaitan & Co. Dhruv Agarwal and Praveen Kumar, Advocates, with him) for the respondents.   Dr. R.G. Padia, Senior Advocate (Rajeev Dubey for Ms. Rashmi Singh, Kamlendra Mishra, Imran Ahmad Abbasi and Ms. Rachna Srivastava, Advocates with him) for the appellant.   --------------------------------------------------   The judgment of the Court was delivered by   ASHOK BHAN J.-This order shall dispose of Civil Appeals Nos. 1760- 1761 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....advanced by the counsel for the parties it would be appropriate to reproduce the relevant provisions of the Notification dated July 27, 1991, which are as under: "Whereas the State Government is of the opinion that for promoting the development of certain industries in the State it is necessary to grant exemption from or reduction in rate of tax to new units and also to units which have undertaken expansion, diversification or modernization; Now, therefore, in exercise of the powers under section 4-A of the Uttar Pradesh Sales Tax Act, 1948 (U. P. Act No. XV of 1948), hereinafter referred to as the Act the Governor is pleased to declare that- (1-A) . . . . . . (1-B) In respect of any goods manufactured in a unit other than the unit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent, of the installed annual production capacity, whichever is higher. 6.. (a) Turnover of sale of goods in any assessment year to the extent of the quantity covered by base production of that year and the stock of base production of previous years shall be deemed to be the turnover of base production. (b) Only the turnover of goods in any assessment year in excess of the quantity referred to in clause (a) shall be entitled to the facility of exemption from or reduction in the rate of tax." Facts: Facts are taken from Civil Appeals Nos. 1760-1761 of 2001. Respondent, M/s. Modipan Fibres Company, deals in production and sale of nylon and polyester yarn. It was granted an eligibility certificate under section 4-A of the Act in ter....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....laimed by it. Feeling aggrieved by the order passed by the Deputy Commissioner (Appeals), the Commissioner of Trade Tax, U.P. (for short "the appellant") filed two appeals being Appeals Nos. 70 of 1997 and 71 of 1997, before the Tribunal, which by its order dated September 24, 1997 accepted the appeals, set aside the order passed by the first appellate authority and restored the order passed by the assessing officer. Aggrieved by the order passed by the Tribunal, the respondent filed revision petition in the High Court which have been accepted by the impugned order. The High Court has set aside the order passed by the Tribunal as well as the assessing authority and restored that of the first appellate authority. Although before the High ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....year. Purpose of granting exemption under the notification dated July 27, 1991 was to promote the development of certain industries in the State. By the said notification exemption from payment of tax or reduction in rate of tax was granted to new units as also to the units which had undertaken expansion, diversification or modernization. The units of dealers in all the revisions are units, which had undertaken expansion/modernization. The units of the dealers (respondents) are covered by clause (1-B)(a) of the Notification. Exemption granted is on the turnover of sales of quantity of goods manufactured in excess of the base production. Under clause 6(a) of the said notification, turnover of sale of goods in any assessment year to the ex....