TaxTMI 
TaxTMI 
2008 (11) TMI 383
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.... 14, 1991 and July 11, 1991 allotted plot Nos. C-28 and C-29, Industrial Area, Orai, in the district of Jalaun in favour of respondent. An agreement for lease was executed in its favour on September 18, 1992 by the UPSIDC for setting up a unit for manufacture of fire bricks and B.P. sets. The appellant commenced production in the said unit on and from September 15, 1992. It was registered as a small-scale unit with effect from September 29, 1992. The first sale of the finished product was made on October 24, 1992. It filed an application claiming exemption from payment of trade tax on the turnover of manufactured products in form 46 before the sales tax authorities on March 12, 1993 said to be within the stipulated period of six months from the date of first sale. The sales tax authorities, however, asked for a copy of the deed of lease. The application was also returned to the appellant by the said authority on June 4, 1993 purportedly for the purpose of removing the said objection. A copy of the deed of lease was furnished to him only on or about April 16, 1994. 4. The fact that the appellant is entitled to exemption from payment of trade tax is not in dispute. However, ....
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....nt that when an allotment is followed by a lease for a period of more than five years, it is incumbent for the applicant to supply a copy thereof, failing which the application would be treated to be incomplete, the consequence whereof is that eligibility certificate could be granted only from the date when the application became complete in all respects and not from a date prior thereto. 10. The State of Uttar Pradesh enacted the U.P. Trade Tax Act, 1948 ("the Act") to provide for the levy of tax on the sales or purchase of goods in Uttar Pradesh. 11. Section 4A of the Act provides for exemption from payment of trade tax in certain cases. We may notice the relevant provisions thereof: "Section 4A. Exemption from trade tax in certain cases.-(1) Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is necessary so to do for increasing the production of any goods or for promoting the development of any industry in the State generally or in any district or parts of district in particular, it may on application or otherwise, in any particular cases or generally, by notification, declare that the turnover of sales in respect ....
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....the date specified in clause (a) only for part of the period notified under sub-section (1); which shall be computed from the date of the application and not from the relevant date of commencement of the period of facility referred to in sub-section (1) till the end of the period of facility; (c) in relation to a new unit referred to in Explanation (1), where the conditions specified in clauses (a) to (d) of the said Explanation (1) are fulfilled on a date later than the date of commencement of the period of facility notified under sub-section (1), then subject to the provisions of clause (b), only for part of the period, notified under sub-section (1), which shall be computed from the date on which all the conditions referred to in the said clauses (a) to (d), have been fulfilled on July 20, 1992 whichever is later, till the end of the period of such facility, so, however, that a manufacturer who was eligible for such facility under clause (c) as it stood prior to July 20, 1992 and had applied for the facility prior to the said date, shall be entitled to the facility in accordance with the said clause (c). (d) in relation to a new unit manufacturing same goods es....
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....e of application of such unit." 13. The form prescribed for filing an application for exemption by the new units is prescribed in form XLVI, clause 10 of which reads as under: "10. Title of land or building - (a) Self-owner Enclose the attested copy of title deed. (b) Taken on lease Enclose the attested copy of the registered lease deed. (c) Allotted by Government or a Corporation or a company owned or controlled by the Government. Enclose the attested copy of such allotment letter" 14. The State of Uttar Pradesh issued a notification on or about July 27, 1991 for grant of exemption, inter alia, from payment of tax to new units set up, the relevant provisions whereof read as under: "2. The facility of exemption from or reduction in the rate of tax shall be subject to the following conditions in addition to the conditions referred to in section 4A of the Act: (i) that the 'new unit' is licensed or in respect whereof a letter of intent has been issued, or which is registered, permanently or otherwise, by the appropriate authority in accordance with any law for the time being in force relating to licensing or registra....
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....d if an application is filed within the period of six months from the date of first sale. If the land in question on which the unit is constructed has been the subject-matter of lease, the applicant was required to file a copy thereof. If the first sale takes place within six months from the date of starting production, the benefit of the exemption shall be given from the date of first sale. Clause (d) of sub-section (2) of section 4A, however, empowers the State Government to specify in the notification issued under sub-section (1) that the exemption from payment of trade tax would be admissible, inter alia, only if the manufacturer furnishes to the assessing authority an eligibility certificate granted by such officer in accordance with such procedure as may be specified. Clause (a) of sub-section (5) of section 4A stipulates that a manufacturer shall be entitled to the facility of exemption for the entire period notified under sub-section (1) only if the application is filed within six months from the relevant date of commencement of the period of facility referred to in sub-section (1) or within six months from the date of notification issued under that sub-section, or by Septe....
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....er alia, are that an application must be filed in the prescribed form. Such an application is required to be filed in eight copies and indisputably the said condition has been complied with. 23. The power of the General Manager to ask for any additional information within a period of sixty days from the date of receipt of intimation in this behalf is also not in dispute. Clause (c) of sub-rule (1) of rule 25 of the Rules assumes importance as the only bone of contention between the parties is as to whether the additional information required was furnished within the time specified. If the unit in terms of clause (c) fails to complete the application or fails to furnish the additional information within the prescribed time, the date on which the application is completed or the additional information is furnished shall be treated as the date of application of such unit. 24. There cannot, however, be any doubt that the said rule has to be read with section 4A, particularly, clauses (b) and (d) of sub-section (2) thereof. 25. The incidental question which would arise for our consideration is as to whether if in terms of the Act or the Rules framed thereunder, the appellant was....
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....on October 28, 1991. 29. It is, however, one thing to say that the order of allotment by a statutory Corporation was followed by execution of a deed of lease but it is another thing to say that only because an order of allotment is followed by execution of a deed of lease, the documents in regard to both were required to be furnished. 30. The eligibility criteria are laid down in the notification, which, as noticed hereinbefore, provide for three contingencies. They are disjunctive in nature and not conjunctive. It is now a well-settled principle of law that a subordinate legislation must be read in the context of the main statutory enactment. It is also well-established that when a Form is prescribed in terms of the Rules, in case of doubt or dispute, the requirements laid down in the Form may also be taken into consideration for proper construction of the provisions of the Rules and consequently the statutory enactment. Paragraph 10 of the form XLVI relates to the title of the land or building. Whereas in the case of lease an attested copy of the registered deed of lease is required to be enclosed along with the application, in the case of allotment by Government or a Corpo....
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....should not be considered to be carrying the same meaning, stating: "(5). . . It must be remembered that no unit has a right to claim exemption from tax as a matter of right. His right is only insofar as it is provided by section 4A. While providing for exemption, the Legislature has hedged it with certain conditions. It is not open to the court to ignore those conditions and extend the exemption. . . 11(5). It is suggested by the learned counsel for the respondent that section 4A must be literally (sic liberally) construed to further the object underlying it. In case of any ambiguity, it is submitted, the construction favouring the assessee should be adopted. We cannot agree. Section 4A provides for exemption from tax. It is repeatedly held by this court that a provision providing for an exemption or an exception, as the case may be, has to be construed strictly." However, in Commissioner, Trade Tax, U.P. v. DSM Group of Industries [2005] 1 SCC 657 [2005] 139 STC 269 (SC)., another Bench of this court opined that when an application for exemption is filed for an expansion or diversification, Explanation 5 appended to section 4A(6) specifying the word "unit" mus....
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....of 200 per cent of the fixed capital investment in those units, whereas in respect of units in Bijnore the benefit would be to the extent of 150 per cent of the fixed capital investment in that unit. Similarly, the base production and the starting date of production could be in respect of those units. However, it is the company which has made the investment. It is the company which is paying the tax. It is the company which would be getting the benefit of the exemption. The manner in which the company gets the benefit would be as set out hereinabove." 34. We do not see any conflict in the ratio laid down in the aforementioned two decisions. The question of applying the principle of strict or liberal interpretation would arise only when the plain meaning attached thereto is found to be absurd or anomalous. If a plain meaning given to the provision for the purpose of considering as to whether the applicant had fulfilled the eligibility criteria as laid down in the notification or not is found to be clear, purpose and object the notification seeks to achieve must be given effect to. 35. The State by enacting section 4A of the Act and rule 25 of the Rules intended to encourage se....