TaxTMI 
TaxTMI 
2010 (1) TMI 1127
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....unit having high speed automatic machines and manufacturing aerated beverages or marketing in consumer convenient glass bottles, running of the factory or workshop is impossible unless such glass bottles and shells are used simultaneously in the machine itself for filling the beverages and under the circumstances whether the Tribunal was justified in overlooking this important aspect of the word 'fixed capital investment' under section 4A of the U.P. Trade Tax Act by merely relying upon the decision under the Bihar Act, namely, Bihar Deferment Rules, where the definition of 'fixed capital investment' is not identical and is restricted to 'fixed assets'? (ii) Whether the Trade Tax Department having allowed the inve....
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....ld not have been written in the present review proceedings before the Divisional Level Committee inasmuch as the eligibility certificate itself was granted on 26th May, 2000 and the review application was filed thereafter in 2000 which came up for consideration in March, 2001? (v) Whether in any view of the matter, the order passed by the Trade Tax Tribunal dated May 14, 2002 is illegal and is liable to be quashed?" The facts of the case are that the assessee is a public limited company, which established a new industrial unit at 107 kms. distance stone, AgraDelhi Highway at Village Dautana, Tehsil Chhatta in the district of Mathura. The new unit established by the assessee applied for the grant of eligibility certificate under sectio....
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....crates as fixed capital investment. The assessee has claimed exemptions on bottles and crates as "fixed capital investment" under the provisions of Explanation (4)(b)(i) to section 4A of the Act, which reads as hereinunder: "(4) 'Fixed capital investment' means value of land and building and such plants including captive power plant, machinery, equipment, apparatus, components, moulds, dyes, jigs and fixtures, as have not been used in any other factory or workshop in India: Provided that- (a) . . . (b) for the purposes of determining value of plants including captive power plant, machinery, equipment, apparatus, components, moulds, dyes, jigs and fixtures only the following shall be taken into account: (i) i....
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....ncludes not only plants and machinery but also includes apparatus, components, moulds, dyes, jigs and fixtures. His argument is that the glass bottles and crates are the absolutely necessary for the unit of soft drink as without the use of these apparatus, the manufacture of soft drink would not be complete. He has also argued that unit of the assessee is the captive industry which is a one-line process in which liquid is being manufactured by way of the continuous process and bottled in the glass bottles and thus, the bottles and crates which are used for collecting the liquid soft drink are absolutely essential for the running of the beverage factory and therefore should be included within the meaning of "apparatus" used for the Explan....