2014 (1) TMI 100

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....y the Principal Secretary, Government of U.P., amending the earlier decisions of the State Government vide circulars dated 3.2.1993 and 26.8.1998, to the effect that the Industrial Units, on the expansion, diversification and modernisation schemes under Section 4-A of the U.P. Trade Tax Act, on prescribed Form 46 under Rule 25 of the U.P. Trade Tax Rules, will be required to pay tax on the turnover upto the level of base production, in which stock transfer and consignment would not be included. 4. On the issuance of circular dated 25.1.2003, the authorities under the U.P. Trade Tax initiated assessment/reassessment/penalty/deferment proceedings both under the U.P. and Central Sales Tax. 5. By an order dated 18.2.2008, a Division Bench of ....

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....n the correct law and as such both the aforesaid decisions stand overruled. The reference is answered accordingly. Let this judgment be placed before the appropriate Division Bench for the disposal of individual writ petition in the light of the law laid down as above." 7. The Full Bench of the Court has thus taken a view that the decision in Ambika Steel Pvt Ltd (Supra), determining the exemption with reference to the turnover of sales, is incorrect; the Division Bench has wrongly observed that the object of the State Government by issuing these notifications was to tax the base production and realize Trade Tax and Central Sales Tax thereon, as the case may be, and by way of incentive, exemption, was granted in excess of the production ....