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TMI Blog2006 (8) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... he turnover of sale of goods in an assessment year in excess of the base production. We do not find any substance in the submission advanced on behalf of the appellants. X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 4-A, the State Government issued Notification No. S. T.-2-1093/XI-7(42)-68 U.P. Act XV-48-Order-90 dated July 27, 1991. Under the notification the State Government for the purpose of promoting the development of certain industries in the State granted exemptions from or reduction in rate of tax to new units and also to units which have undertaken expansion, diversification or modernization. To appreciate the submissions advanced by the counsel for the parties it would be appropriate to reproduce the relevant provisions of the Notification dated July 27, 1991, which are as under: "Whereas the State Government is of the opinion that for promoting the development of certain industries in the State it is necessary to grant exemption from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufactured earlier by such unit in case of diversification; and (ii) of the goods manufactured in excess of the base production in the case of units undertaking expansion or modernization. . . . . . 5.. Base production of a unit undertaking expansion or modernization shall be deemed to be-- (a) maximum production achieved during any one of the preceding five consecutive assessment years, or (b) 80 per cent, of the installed annual production capacity, whichever is higher. 6.. (a) Turnover of sale of goods in any assessment year to the extent of the quantity covered by base production of that year and the stock of base production of previous years shall be deemed to be the turnover of base production. (b) Only the turnover of goods in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved against the order passed by the assessing authority, the respondent filed two appeals, i.e., one under the State Sales Tax Act and the other under the Central Sales Tax Act, 1956 before the Deputy Commissioner (Appeals), which were accepted by the order dated February 4, 1997. The order passed by the assessing authority was set aside and the respondent was granted exemption on the goods as claimed by it. Feeling aggrieved by the order passed by the Deputy Commissioner (Appeals), the Commissioner of Trade Tax, U.P. (for short "the appellant") filed two appeals being Appeals Nos. 70 of 1997 and 71 of 1997, before the Tribunal, which by its order dated September 24, 1997 accepted the appeals, set aside the order passed by the first appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ganguli, learned Senior Counsel appearing for the respondents contends that the facility of exemption can be availed of on the turnover of sale of goods in an assessment year in excess of the quantity referred to in sub-clause (a) of clause 6 of the Notification. According to him, exemption is to be granted after taking into consideration the turnover of sale of goods of the entire assessment year. Purpose of granting exemption under the notification dated July 27, 1991 was to promote the development of certain industries in the State. By the said notification exemption from payment of tax or reduction in rate of tax was granted to new units as also to the units which had undertaken expansion, diversification or modernization. The units o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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