TaxTMI 
TaxTMI 
TaxTMI 
2014 (6) TMI 689
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....o. 1 to modify the Notification dated 19-7-1996 in conformity with Industrial Policy of 1994. (iv) To issue any other suitable writ, order or direction as this Hon'ble Court may deem fit and proper in the circumstances of the case. (v)To award costs throughout to the petitioner." The brief facts of the case are that the petitioner had an Industrial Unit at A-3, Surajpur Industrial Area, Dadri Road, Greater Noida, District Gautam Budh Nagar for the manufacturing of Two Wheelers. It appears that the petitioner had entered into a new Foreign Collaboration agreement for the manufacturing of 4-Stroke two wheeler motorcycles, which was a different kind of motorcycle than two wheeler motorcycles being manufactured earlier. The petitioner had made an additional investment of Rs. 96,41,67,155/- upto 31.3.1998. In such unit, the manufacturing of 4-Stroke two wheeler motorcycles was started on 13.2.1998, first sale was made on 14.8.1998 and an exemption application under Section 4-A of the U.P. Trade Tax Act (hereinafter referred to as the ("Act") was moved on 13.8.1998. In the application, the exemption has been claimed under the Notification dated 19.7.1996 under the Diversification....
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.... Policy and if it is not so, it should be made in accordance to Industrial Policy. Reliance is placed on the decision of the Apex Court in the case of State of Bihar and others vs. M/s. Suprabhat Steel Limited and others, reported in [1999 U.P.T.C.-170]. Sri C.B. Tripathi, learned Special Counsel for the State of U.P. submitted that Section 4-A of the Act provides exemption to the new units and to the units undergone for expansion, diversification or modernisation and gives power to the State Government to issue notification in this regard. In exercise of power under Section 4-A of the Act, a general notification has been issued on 31.3.Rs. 1995 granting exemption to the new units established between 1.4.1995 to 31.3.2000 or has undergone for expansion, diversification or modernisation during the aforesaid period. This notification was applicable to all the goods and to the units where capital investment is less than Rs.50 crores or more than Rs.50 crores. The percentage of capital investment and the period of exemption had been fixed having regard to the place of the unit. However, on the representation of the manufacturers of the two wheelers, a special notification had been iss....
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....ette publication has been made. He further submitted that the alleged U.P. Industrial Policy, 1994 provides Special Incentive to Large Industrial Units. It clearly provides that this facility shall be given on a case to case basis to the units which have an investment of more than Rs.50 crores. It shall be dependent on the benefit that will accrue to the State as a consequence of setting up of such a unit. Decisions shall be taken on the basis of location of the unit, employment potential and the possibilities of down stream projects, apart from the contribution to the general economic development of that area. Such policy does not contemplate 200% exemption on the capital investment to the units where capital investment is more than Rs.50 crores and, therefore, the notification dated 19.7.1996 cannot be said to be repugnant to the U.P. Industrial Policy, 1994. He submitted that a general notification had also been issued on 21.2.1997 granting exemption to the units having fixed capital investment of Rs.50 crores or more providing exemption contemplated therein. It provides exemption to the new units and to the units undergone for expansion, diversification or modernisation during ....
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....8244 dated 30.9.1982 has provided exemption from payment of tax to the new units for the period specified therein. A new Industrial Policy has been announced by the State Government on 3.5.1990. Accordingly, Section 4-A of the Act has been amended. For the purposes of the writ petition, the amended Section 4-A of the Act is relevant and reads as follows: 4-A. Exemption from trade tax in certain cases. (1) Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is necessary so to do for increasing the production of any goods or for promoting the development of any industry in the State generally or in any districts or parts of districts in particular, it may on application or otherwise, in any particular cases or generally, by notification, declare that the turnover of sales in respect of such goods by the manufacturer thereof shall, during such period not exceeding [twelve years] from such date on or after the date of starting production as may be specified by the State Government in such notification which may be the date of the notification or a date prior or subsequent to the date of such notification and where no date is so specifie....
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....sting units undergone for expansion, diversification or modernisation during the period 1.4.1995 to 31.3.2000. This notification was applicable to the units making investment less than Rs.50 crores and more than Rs.50 crores. This was applicable to all the goods. The period and percentage of exemption was fixed having regard to the place of the units. A specific notification has been issued granting exemption to the manufactures of two wheeler automobiles with the view to increase the production. The exemption has been granted to the new units as well as to the units undergone for expansion, diversification or modernisation which had started production after 1.12.1994 upto 31.3.2000. Clause (vi) provides exemption not exceeding the amount of fixed capital investment. The Notification Nos. T.T.-2-1711/xI-9(460)/94-U.P. Act 15-48 Order 96 (Extraordinary Gazette dated 19.7.1996) reads as follows: 1. Whereas the State Government is of the opinion that it is necessary for increasing the production of two wheeler automobiles in the State, to grant exemption from tax to new units having a fixed capital investment of fifty crore rupees or more as also to units which may make additional f....
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....d not latter than March 31, 2000. (ii) that the facility of exemption of tax under this notification shall not simultaneously be available to a unit availing any tax facility under any other notification issued under section 4-A of the Act. (iii) that the unit is licenced or in respect whereof a letter of intent has been issued or which is registered permanently or otherwise by the appropriate authority in accordance with any law for the time being in force relating to licencing or registration of such units. (iv) that the new unit is established on land or building or both owned or taken on lease for a period of not less than fifteen years by such unit or allotted to such unit by the Central or the State Government or any Government Company or any Corporation owned or controlled by the Central or the State Government. (v) that the turnover of sales of two wheeler automobiles for the purposes of exemption under this notification shall include the turnover of sales of such by-products and waste products of a unit as are mentioned in the Eligibility Certificate issued to such unit under section 4-A of the Act. (vi) that the total amount of tax exemption under the Act as also und....
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..... Such certificate shall contain the following details : (a) additional fixed capital investment made during the assessment year; and (b) cumulative additional fixed capital investment made from or after December 1, 1994 upto the close of the assessment year; and (c) amount of tax exemption availed by the unit from or after December 1, 1994 upto the close of the assessment year. (xi)that the said unit furnishes to the assessing authority concerned an eligibility certificate granted in this behalf, as the case may be, by the General Manager, District Industries Centre or Area Development Officer (Industries) of the concerned Industrial Development Authority or Additional Director or Joint Director of Industries of the range of Additional or Joint Director Industries of the concerned Industrial Development Authority. Further, a notification had been issued on 21.2.1997 granting exemption to the units making an additional fixed capital investment of Rs.50 crores or more to the new units and to the units undergone for expansion, diversification or modernisation wherein the production had been started after 1.12.1994 to 31.3.2000. This notification was also almost in terms of the n....
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....xemption. Perusal of the U.P. Industrial Policy, 1994, which has been heavily relied upon by the learned counsel for the petitioner, it appears that this Policy has been published by the Information & Public Relations Department, U.P., Lucknow, prepared by the Udyog Bandhu, a State Government Agency for Industrial Promotion. The relevant part of the Policy on which much emphasis has been placed reads as follows: "Special Incentive To Large Industrial Units. In order to attract large industrial units to the State, it is proposed to provide special incentive to such units. This incentive shall be in addition to the ones listed in the policy. This attraction would be in the form of concessions/incentive with reference to land or its value, trade tax etc. This facility shall be given on a case to case basis to the units which have an investment of more than Rs.50 crore. It shall be dependent on the benefit that will accrue to the State as a consequence of setting up of such unit. Decisions shall be taken on the basis of location of the unit, employment potential and the possibilities of down stream projects, apart from the contribution to the general economic development of that area....