9911796707
TMI Blog1991 (4) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... 1988 (annexure 11 to the writ petition). Further a direction to respondent No. 2 to grant the exemption/eligibility certificate under section 4-A of the U.P. Sales Tax Act, 1948, to the petitioners in respect of unit No. 2 manufacturing ampicillin trihydrate and ampicillin anhydrous for a period of five years with effect from 29th October, 1983, has been sought. The petitioners earlier made an application under section 4-A of the U.P. Sales Tax Act for the grant of exemption in respect of unit No. 2. The said application was rejected for the reason recorded in the impugned order as aforesaid. Aggrieved as against that the petitioners made an application for review of the said order. The Divisional Level Committee, Meerut, after consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial at length we find so far as the first ground is concerned, it is not in dispute that the petitioner is a private limited company. It is under that company the first unit was established for which the registration certificate under the Factories Act was obtained in the name of the said private limited company. The respondent, Divisional Level Committee, Meerut, rejected the claim of the petitioners on the ground that since the land, building, machines, raw materials, electric connection and registration of the factory, etc., not being in the name of the new unit, it cannot be said that the unit is a new one. The Divisional Level Committee, Meerut, respondent No. 2 committed an error in coming to that conclusion on the facts of this case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s at any other place in the State then such second unit established by such dealer would be treated to be a new unit. Under second part, an industrial unit manufacturing any other goods on or adjacent to the site of an existing unit is also treated to be a new unit. In the second part of the definition of "new unit" the words are "other goods". Thus if an industrial unit manufactures any other goods even adjacent to the existing site, then the second unit established by the industrial unit would be treated to be a new unit. The approach of the Divisional Level Committee by rejecting the claim of the petitioners only on the ground that the land building, machines, raw materials, electric connection and registration of the factory being n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufactured by the petitioner-company, the first one being paracetamol which is an analgesic and the second medicine manufactured is antibiotics the two medicines cannot be treated to be the same goods. The learned Standing Counsel urged that since both are medicines and, therefore, the manufacturing of two medicines would not make it to be different goods. Reliance was also placed that since the taxing entry is a medicine covered all the medicines and, therefore, the two drugs falling under the same head cannot be treated to be different goods under the U.P. Sales Tax Act. The argument in our considered opinion is fallacious. The taxing entry may be of various goods though falling under the same head for taxing purposes. Therefore, the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orded by the Divisional Level Committee that the case of the petitioners does not fall within first part of paragraph 10 as the petitioner is not using any finished goods of earlier unit as raw material of later unit. First part of paragraph 10 merely clarified even if it would not disentitle the later unit to be treated as new unit on this ground. But this does not mean when a unit is not using as raw material the finished goods of earlier unit the later unit would be disentitled for exemption. It is clear that the Divisional Level Committee committed an error and further the said Committee should have examined the definition of "new unit" and should have come to the conclusion either way by following the provision as we have indicated abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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