2013 (3) TMI 586 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Interpretation of exemption u/s 4B of the U.P. Trade Tax Act, 1948 for raw materials and products, specifically regarding the term "fuel".
2. Determining whether high speed diesel and LD oil used for running generators qualify as fuel under the Act.

The judgment addressed the case where the revisionist, a manufacturer, applied for exemption u/s 4B of the U.P. Trade Tax Act, 1948, mentioning the use of fuel for manufacturing. Although the exemption was granted without specifying "fuel," the revisionist later sought exemption for high speed diesel used for generators. The assessing officer denied this exemption, stating fuel was not mentioned initially. The Tribunal agreed, claiming high speed diesel was not fuel for manufacturing. However, the High Court noted that both high speed diesel and LD oil were used to generate heat for electricity, crucial for the manufacturing process. As per the Act, materials used for manufacturing are eligible for exemption, leading the Court to overturn the lower authorities' decisions and grant the revisionist the exemption for high speed diesel and LD oil used as fuel for generators.