1990 (6) TMI 216

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....e furnished a taxable turnover of Rs. 8,89,661.88. The assessing authority determined the taxable turnover at Rs. 72,15,400. The total sales as per accounts were Rs. 1,06,61,758.95. The assessing authority initially granted exemption pleaded by the assessee, which covered the turnover relating to plain envelopes, craft envelopes and calico mounted colour papers. The Deputy Commissioner of Sales Tax initiated suo motu revision proceedings under section 35 of the Act and by order dated November 16, 1988, he held that the assessment order passed by the assessing authority for the year 1980-81 dated February 28, 1985, is clearly erroneous and that exemption in respect of goods not covered by the certificate of registration should not have been ....

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....ract S.R.O. No. 968/80: "S.R.O. No. 968/80........hereby make an exemption in respect of the tax payable under the said Act on the turnover of the sale of goods produced and sold by the new industrial units under the small-scale industries for a period of five years from the date of commencement of sale of such goods by the said units subject to the conditions that the tax if any collected by such units by way of tax on their sales shall be paid over to Government and that sales tax, if any, already paid by such units to Government shall not be refunded: Provided that such units shall produce proceedings of the General Manager, District Industries Centre, declaring the eligibility of the units for claiming exemption from sales tax: Provid....

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....owing manufacturing/processing/servicing activity. Products manufactured: 1. Card board boxes, calendars, playing cards, job works and note books. 2. Raw materials: Spirit, binding cloth, photofilms, zinc sheets, damping house, paper, board, printing ink, tin sheets, stitching wire and paraffin wax. The relevant certificate number is "R-6705/81" "R-14361/79/K.Dis". It is agreed that the certificate of registration does not mention that the assessee is entitled to manufacture or produce plain envelopes, craft envelopes and calico mounted colour papers. But counsel for the revision petitioner highlighted the order passed by the General Manager, District Industries Centre, Trichur, dated January 4, 1985 wherein he has stated that the unit ....

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....d with the Department of Industries and Commerce as a small-scale industrial unit. It is clear from a perusal of the notification aforesaid that though the exemption is available in respect of the turnover of the sale of goods produced and sold by a new industrial unit under the small-scale industries, the new industrial unit should be one set up after April 1, 1979 and registered with the Department of Industries and Commerce as a small-scale industrial unit. It is not every new industrial unit that will be entitled to the exemption. It is only such of those units which are set up on or after April 1, 1979 and registered with the Department of Industries and Commerce as a small-scale industrial unit, that will be entitled to the exemption....