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TMI Blog1996 (3) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... o.), with him], for some respondents. Vivek Gambhir, S.K. Gambhir and M.s Dhillon, Advocates, for some other respondents. Raja Ram Aggarwal, Senior Advocate [Ravinder Narain and Ms. Punita Singh, Advocates (of J.B. Dadachanji Co.), with him], for some respondents. K.S. Chauhan and R.B. Misra, Advocates, for the appellant (State). -------------------------------------------------- The judgment of the Court was delivered by SUHAS C. SEN, J.- This case arises out of a Gazette notification dated January 9, 1970, issued by the Government of Uttar Pradesh granting exemption from payment of sales tax to various newly set up industrial undertakings. (1) For the facts see [1977] 40 STC 455 (All). The notification was to the following effect: "Whereas, it has been brought to the notice of State Government that the seven industrial units mentioned in Schedule below have started the manufacture of goods mentioned in column II of the Schedule with effect from the date noted against each; And, whereas, the State Government is of opinion that it is necessary so to do for increasing the production of the said goods manufactured by the said industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequent Government Order dated August 25, 1971, the earlier order was modified and it was provided that the State sales tax paid by large and medium scale industries on the raw materials procured by them for the initial five years of the production would be refunded to such industries. Similarly such industries were granted exemption from payment of State sales tax on their finished products for a period of five years from the date the unit went into production. It was pointed out in that case that because of the aforesaid Government order the assessee could not claim benefit of exemption under section 8(2A) of the Central Sales Tax Act because the exemption was not a general one, the exemption under Government Order No. 159 was not with reference to goods or a class or category of goods, but with reference to an industrial unit producing them and their manufacture and sale within a particular period. In the instant case, the exemption has not been granted to the goods generally. Specified goods (mirrors and toughened glass) produced by a specified company have been exempted from payment of sales tax for a specified period of time. It is not the case of the assessee that mirr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... generally.....". In order to take advantage of this section 8(2A), a dealer will have to establish that sale or purchase of the goods in question was exempt from tax generally. If it was a special exemption granted to him because his undertaking was a new industrial undertaking or for any other reason for a limited period, then the exemption will not be of general nature and he will not be entitled to get the benefit of this sub-section. There was an explanation to the old sub-section (2A) of section 8, which made it clear that if the exemption was only in specified circumstances or under specified conditions or in relation to which the tax was levied at specified stages or otherwise than with reference to the turnover of goods, then the sale or purchase of goods shall not be deemed to be exempted from tax generally. In the instant case, the exemption has been granted only in respect of specified goods produced by certain specified newly set up undertakings mentioned in the notification. The benefit of exemption will be available to these new undertakings for a period of three years. In other words, at a specified stage of development of these industries they will be given a sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the stipulation that the turnover of such sales would, for a period of three years be exempt from payment of sales tax did not amount to exempting the turnover of such goods from tax under specified circumstances or specified conditions as in the case of Indian Aluminium Cables Ltd. [1976] 38 STC 108 (SC); (1976) 4 SCC 27. This Court was not called upon to hold nor did it hold that this would amount to general exemption of the goods from the sales tax. In that case the principle underlying section 6 was explained as under: "Section 6 of the State Act does not speak of exemption, but deals with tax-free goods. In other words, section 6 deals with specified goods on which no tax is payable. Section 5 of the State Act deals with what has to be excluded from the taxable turnover of the dealer. Both the sections deal with goods which do not suffer from sales tax. Section 8(2A) of the Central Act exempts goods from inter-State sales tax where a tax law of the State has exempted them from sales tax. The explanation to section 8(2A) of the Central Act takes away the exemption where it is not general and has been granted in specified circumstances or under specified conditions. The pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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