2007 (10) TMI 598

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....Tribunal is legally justified to hold that the exemption unit available up to turnover of Rs. 50,00,000 is applicable for the units of an institution separately under Notification No. 709 dated February 27, 1997? " Assessment year 1997-98. "(i) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal is legally justified to hold that the exemption unit available up to turnover of Rs. 50,00,000 is applicable for the units of an institution separately under Notification No. 709 dated February 27, 1997? (ii) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal is legally justified to hold that the amount received for sale is not part of turnover?" Assessment year 1998-99. "(i....

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....ution. With regard to the second question involved in the assessment year, 1997-98, he submitted that the amount towards claim was received from the purchaser, therefore, it was the part of the turnover. The learned counsel for the dealer submitted that so far as first question is concerned, there is not much to say as from the language of the notification, it appears that the exemption was available to the institution and not to the individual unit. So far as second question is concerned, he submitted that the amount which was received as a claim was not in the nature of sale consideration, but it was on account of non-lifting of the goods which was in the nature of compensation, therefore, it was not the part of the turnover. The....

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....on to the institution on its manufactured product up to limit of Rs. 50 lacs in an assessment year. The intent of the Legislature was clear to grant exemption on the turnover of Rs. 50 lacs only in an assessment year to the manufactured product by the institution. In my opinion, there is no scope of any contrary intendment." From a bare perusal of the notification it is clear that the exemption was to the institution as a whole and not to the unit individually and, therefore, the Tribunal has erred in allowing the exemption of Rs. 50 lacs to each unit of the institution. So far as second question involved in the assessment year 1997-98, I do not find any error in the order of the Tribunal. The amount received as a claim for non-liftin....