TaxTMI 
TaxTMI 
2026 (8) TMI 150
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....cated at different locations. According to the appellant, the manufacturing units of switches are located at Delhi, Pune and Gurugram; the light manufacturing unit is situated at Sonepat and the horn manufacturing unit is situated at Delhi. In the State of Haryana, the appellant has two units, one at Sonepat and the other at Gurugram. The unit at Sonepat was set up in 1989, wherein only lights are manufactured, whereas, the unit at Gurugram was established in 2000-2001, for the purpose of manufacturing switches. 3. It transpires that the Government of Haryana inserted Rule 28C in the Haryana General Sales Tax Rules, 1975, for the purpose of granting tax concession to a class of industries for a fixed period, on certain conditions as enumerated therein. Relevant provisions of the Rules shall be referred to later. 4. The appellant moved an application seeking tax concession under Rule 28C(6)(a) of the Rules claiming itself to be an industrial unit. The registration certificate under the Act for the unit in question was also obtained by the appellant on 08.01.2002. The commercial production in the unit had commenced on 30.04.2002. The description of manufactured products as spec....
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....any's Sonepat or the former in an expansion unit of the latter?" 8. The Tribunal has rejected the claim of the appellant by observing as under:- "10. As per the above definitions the expansion unit as well as diversification unit can be set up at the same or new location as that of the existing unit. In other words it is found that the a expanded/diversification unit of an industrial company can also be started at another place in the same district or in other district and it need not necessarily be in the same district and/or at the same place as that of the existing unit. 11. When the present case is examined, a bare perusal of the 12th Annual Report 20.03.2004 of Minda Industries Limited i.e. the appellant company reveals that it has its in Haryana i.e. several branches/units for works at Delhi, Pune and Tamilnadu, besides its unit in sonepat district and another in Gurgaon district. To the same effect is the mention in the middle of second page of grounds of this appeal wherein it is specifically mentioned that M/s Minda Auto Industries Ltd. which was manufacturing Automobile switches was amalgamated with M/s Minda Industries Ltd. w.e.f. 01.04.1994 meaning ....
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....all the items above mentioned for which entitlement certificate has been issued to him vide letter dated 21.10.2004 aforementioned and these items undoubtedly include the item/items being manufactured in the appellant company's Sonepat unit. 14. In that view of the matter it can not be held that the appellant company's Gurgaon unit is manufacturing only a different item than its Sonepat unit and instead the former is manufacturing same item as that of the latter, besides some other items. Thus its Gurgaon unit falls within the definition of expansion/diversification unit." 9. Learned senior counsel for the appellant contends that the claim of the appellant was for grant of exemption from payment of tax as a new industrial unit, which has not been examined in its correct perspective by the Tax Tribunal, Haryana. It is submitted that the Tribunal has erred in affirming the view taken by the High Level Screening Committee, which led to the passing of an order by the Director, as per which, the case of the appellant was of expansion, and not of establishment of a new industrial unit. 10. Learned counsel for the revenue has placed heavy reliance upon the disclosur....
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....onal fixed capital investment in plant and machinery made [within two years immediately preceding the date of commercial production of diversified capacity], exceeds 25% of the fixed capital investment (gross block) of the unit before expansion at the same or new location." 15. 'New Industrial Unit' has been defined in sub-clause (k), which reads as under:- "new industrial unit' means a unit which has been set up in the State of Haryana and has come into commercial production during the operative period of this policy or having come into commercial production under rule 28-A or 28-B has not started availing any tax concessions under the said rule. 16. Clause 28C (o) of the Rules, defines 'units in pipeline', which is reproduced herein after:- "units in pipeline means an industrial unit which as on the 30^th April, 2000, fulfils the following conditions:- (i) is registered with the Department of Industries (ii) has arranged land or premises by way of purchase, allotment, lease or rent; (iii) has applied for finances from a regular financial institution; and (iv) would start production within 2 years i.e. before the 1st May,....