2008 (9) TMI 1030 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of eligibility for diversification scheme under Section 4-A of U.P. Trade Tax Act.

Summary:
The petitioner established a unit for manufacturing 'Spum line crown cork' in 1986 and later applied for eligibility under diversification scheme to manufacture 'double lip dry blend crown'. However, the eligibility was granted under 'modernisation' scheme instead. The petitioner contended that the manufacturing process and machinery for both products were different, and the raw materials and usage were also distinct. The petitioner's appeal was rejected by the Trade Tax Tribunal, stating that the goods produced using modern technology were not different from the earlier goods. The Tribunal held that for diversification, the production of goods of a different nature is crucial. The Court upheld the Tribunal's decision, emphasizing that the modernization of machinery does not warrant eligibility unless the produced goods are different. The Court found no error in the Tribunal's order and dismissed the revision.