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TMI Blog2013 (4) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... construction of a new unit or plant, which goes into production after the date Without establishment and making the provisions for its construction and effective running, the generation of the power is not possible. So, the Corporation was right in claiming the tax exemption, in respect of those goods used in the establishment and effective running of the plant, as per Section 4-B(2) of the Act, as the power can only be generated when the entire plant is established and becomes functional thereafter. This Court is convinced with the contention of the learned Counsel for the respondent Corporation and feels that the analogy, whereupon the decision of the Assessment Officer was based, lacks substance and was rightly rejected by the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction of electricity, but did not give such benefit on the articles mentioned herein below on the ground that the same are not used directly in production of electricity, and, accordingly, levied tax on those articles. (1) All types of cement, bitumen, GC Sheets, asbestos sheets, explosives, detonators, (2) Loader, dodgers, excavators, sprinklers, dumpers, graders, cranes, muck-dumpers, shawal doglines, back hoges, conversion kits and their spare parts, packers road rollers and their spare parts, electric win chase, sheet piling plant and well shiking equipments with spare parts, tyres, tubes and flaps (meant to be used in heavy machine). (3) Paints and varnishes, glasses of various thickness and sizes, pipe fitting, delivery pip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as that of the Joint Commissioner (Appeal). Hence, this revision has been preferred by Trade Tax/Commercial Tax Department. 5. This revision was admitted by this Court on the following question of law:- Whether the Commercial Tax Tribunal has erred in law in permitting the assessee u/s 4-B(2) of U.P. Trade Tax Act, 1948, to purchase the goods in question at concessional rate which were not directly used in production/generation of power (electricity) ? 6. Heard learned Counsel for the parties and perused the papers on record. 7. Before any further discussion, this Court thinks it just and proper to reproduce the relevant part of Section 4-B(2) of the Act, which is as under:- Section 4-B(2) Where a dealer requires any g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4-B, the tax shall be payable at the rate specified in column 4 of the Annexure below on the sale to or as the case may be, purchase by, a dealer holding a valid recognition certificate under sub-section (2) of the said section 4-B, of the goods mentioned in column 3 of the said Annexure for use in the manufacture or in the packing of the goods mentioned in column 2 of the said Annexure manufactured or processed by him and that the goods mentioned in column 2 of the said Annexure shall be notified goods for the purposes of the said section 4-B. ANNEXURE Sl. No. Name of notified goods Name of the goods Rate of Tax 1 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in Form 3-B obtained from the dealer to whom such goods were sold or supplied, be liable to tax at the rate of two percent on the turnover of first purchase of such goods. 9. The sole argument put forth before this Court on behalf of the Department/revisionist was that all these items, indicated above, were not directly and substantially connected with the generation of the electricity. So, the learned Tribunal did not rightly construe the provisions of law and allowed the special relief on those goods as per Section 4-B(2) of the Act. This contention has been rebutted by learned Counsel for the Corporation by contending that use of these items is indispensable in construction of a new unit or plant, which goes into production afte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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