TaxTMI 
TaxTMI 
1977 (9) TMI 108
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.... materials purchased for the manufacture of M.S. rods for the period from 6th January, 1974, to 11th September, 1975. Annexure 3 is an order dated 31st October, 1974, passed by the Deputy Commissioner of Commercial Taxes dismissing the revisional application filed by the petitioner against the order dated 8th July, 1974. The petitioner thereafter filed another revision application under section 31(3)(c) of the Bihar Sales Tax Act, 1959, before the Commissioner of Commercial Taxes, Bihar. The Commissioner dismissed the revisional application by his order dated 7th April, 1976, and that order has been marked as annexure 4 to this writ application. 2.. The facts, shortly stated, are that a partnership firm under the name and style of M/s. N....
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....plements. Under the exemption granted in form B, the period of exemption was five years beginning from 6th January, 1969, the day the firm had gone into production. According to the petitioner, a new firm of four partners, namely, Bholaram Goenka with his three sons Ram Nivas Goenka, Ishwar Prasad Goenka and Nagarmal Goenka, was constituted under a registered deed of partnership dated 2nd March, 1970, for the purpose of starting a new industrial unit for the manufacture of M. S. rods, production of which was started on and from 11th September, 1970. 3.. It is said that the new firm also made an application to the industries department to recognise this unit as a new industry which was also accepted by the industries department. But as th....
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....ive years from the date it went into production. It is further said that the machineries for the production of M.S. rods were different from the one which was used by the old firm for producing buckets and agricultural implements. Reliance was also placed on the insertion of M.S. rods which was made by way of an amendment in the exemption certificate granted by the sales tax department which shows that the production of M.S. rods started with effect from 11th September, 1970. 4.. A counter-affidavit has been filed on behalf of the respondents in which, inter alia, it has been stated that the industries department did not recognise the new firm as a newly started small-scale industrial unit and that is why the old registration certificate....
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.... The argument of Mr. Jain, although quite attractive, has no substance. The notification which has been marked as annexure 1 to the writ application clearly says that newly set up industrial unit approved and registered by the industries department of the Government will be exempted from the levy of general sales tax and special sales tax for a period of five years from the day the industry starts its production. That means that before exemption certificate in form B can be granted to the industry by the sales tax department, the industry must be approved and registered by the industries department of the Government of Bihar. In some cases, an establishment may start a new industrial unit but if the establishment wants to avail of the benef....