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TMI Blog1983 (1) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... tured by the said industrial units shall be exempt from payment of sales tax for a period of three years with effect from the date of publication of this notification in the official Gazette." At Sl. No.1 is mentioned M/s. Good Luck Rubber and Allied Industries and the date of starting production is August, 1968. This was followed by Notification No. ST-2669/X-902(8)-70 dated 16th April, 1970, which notification runs thus: "In exercise of the powers under section 4-A of the U.P. Sales Tax Act, 1948 (U.P. Act No. XV of 1948), read with section 21 of the U.P. General Clauses Act, 1904 (U.P. Act No. 1 of 1904), and in partial modification of Government Notification No. ST-II-10225/X dated January 9, 1970 (S. No. 411), the Governor is pleased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter the new partnership came into existence. The Judge (Revisions) was of the view that the exemption granted under section 4-A continued and was available to the reconstituted assessee. Aggrieved by the order of the Judge (Revisions), the Commissioner, Sales Tax, has filed this revision. Learned standing counsel appearing in support of this revision has argued that the exemption ceased to be available to M/s. Good Luck Rubber and Allied Industries as it was a new juristic assessee. Section 4-A of the U.P. Sales Tax Act has been introduced with the aim of increasing the development of industrially backward districts. It is clear that the intention of the legislature in introducing section 4-A was to promote industrial development in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t are that on 22nd September, 1970, the State Government issued a notification under section 4-A of the U.P. Sales Tax Act granting exemption to M/s. U.P. Leather Board Industries, Agra, on manufacture of leather board from 10th January, 1968, to 9th January, 1971. The firm consisted of four partners. It was dissolved on 5th October, 1970. The goodwill and assets of the Board were purchased by certain other persons who applied for extension of exemption which was not accepted. The State Government by a letter dated 14th May, 1972, communicated to the reconstituted firm, that as the exemption has already been granted which has to continue till 9th January, 1971, there was no reason for extension. In the assessment proceedings it was held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se (b) of sub-section (3), the State Government has further been empowered to issue notification in respect of such of those goods only as are manufactured in a new unit. The word "new unit" or "industrial unit" has not been defined but the exemption granted in the notification issued is not to a dealer but to an industrial unit which started production from 10th January, 1968. If this unit continued till 9th January, 1971, there is no reason to refuse exemption on the ground that the firm has been reconstituted. Section 4-A or the notification does not use the word "dealer". The exemption is to the goods manufactured by a particular unit. So long as that unit continues in operation the exemption continues. It has not been pointed out by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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