9911796707
TMI Blog2013 (11) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the exemption from, or reduction in trade tax on the production, over and above the base production, which was not the intention of the notification. The exemption on the stock transfer, or transfer of goods for consignment sale, is by the operation of law inasmuch as they do not fall within the purview of sale. This benefit is available even to the existing Units. Under Section 4-A of the Act and the notifications issued thereunder the benefit of exemption to the existing units, which have undergone expansion, diversification or modernisation is contemplated on the quantity of the goods in excess of the base production. The quantity of base production is determined only once on the consideration of the capacity of the production and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 1.3.2009 served on 30.6.2009 in so far as the stock transfer has been denied for calculation of base production for the assessment year 2006-07. By prayer no.(c) the petitioner has prayed for writ of certiorari quashing the impugned notices dated 1172 dated 31.7.2009 and 1420 dated 20.8.2009 issued by respondent no.1 for the assessment year 2006-07; and by prayer no.(d) the petitioner has prayed for a writ of prohibition restraining the respondent no.1 from proceedings in pursuance to the aforesaid notices. 3. By an interim order dated 2.9.2009 further proceedings in pursuance to the notices dated 31.7.2009 and 20.8.2009 were stayed provided the petitioner furnishes adequate security to the satisfaction of respondent no.1 for a sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tock transfer/consignment transaction. In view of above, we are of the considered opinion that the view taken by the Division Bench in the case of Ambika Steel Private Limited Vs. State of U.P. and others (Supra) and in the case of M/s IFFCO Ltd. Vs. State of U.P. & others does not lay down the correct law and as such both the aforesaid decisions stand overruled. The reference is answered accordingly. Let this judgment be placed before the appropriate Division Bench for the disposal of individual writ petition in the light of the law laid down as above." 7. The three Judges Full Bench of the Court has thus taken a view that the decision in Ambika Steel Pvt Ltd (Supra), determining the exemption with reference to the turnover of sales, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the production and maximum production of any one year of preceding five consecutive years. Such determined quantity of base production is the basis for the exemption for the period, for which the unit is entitled for exemption. The unit which has undergone expansion is thus entitled for the exemption on the turnover of the quantity in excess of the "quantity of base production" plus stock of the base production of the previous years. The Full Bench held that base production includes the quantity of the stock transfer/consignment transaction. 8. Learned Standing Counsel informs the Court that the State Government has filed a Special Leave to Appeal (Civil) No. 4257 of 2011 State of U.P. Vs. M/s. Hindustan Lever Ltd against the order dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
