2007 (3) TMI 698

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....er 1, 1997 for processing of potato, vegetable and fruits and for manufacturing and sales of ice and was authorised to purchase machinery, machinery spare parts, compressor, electrical motor, pump starter, ammonia gas, tools, iron pipes, electric goods, iron steel, hardware, cement, wood, rodi buderpur, etc. During the year under consideration, the applicant had purchased machinery for Rs. 7,74,482 from outside the State of U.P. and issued form C in respect thereof. Such machinery were admittedly used in the construction of cold storage. Admittedly, during this year, ice had not been manufactured and sold. The assessing authority issued notice under section 10A of the Act on the ground that the dealer had imported compressor, electrical mot....

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.... parties. Learned counsel for the applicant submitted that the applicant had been granted registration for processing of potato, vegetable and fruits and for manufacturing and sales of ice. He submitted that the machinery, which were purchased, were used in the construction of cold storage and for ice factory. He submitted that during the year under consideration, ice could not be manufactured because ice chamber could not be constructed. He submitted that the machinery which were installed, were for cold storage as well as for manufacturing of ice. He submitted that in the cold storage during the preservation, processing of potato, vegetable and fruits are involved, therefore, there was no violation of section 10(d) of the Act. He furth....

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....old storage there may not be processing for the purposes of being an industrial undertaking for the purposes of exemption under the Income-tax Act, but in the present case, registration was granted to the applicant under the Central Sales Tax Act for the processing of potato, vegetable and fruits and it appears that at the time of grant of registration, it was known that the applicant was going to establish cold storage and thus, use of machinery in the construction of cold storage was under the bona fide belief and cannot said to be without any reasonable excuse. In the case of Raghubir Cold Storage, Mainpuri v. Commissioner of Sales Tax, reported in [1995] 30 STI 18, the dealer applied for registration under the Central Sales Tax Act. ....