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TMI Blog1996 (8) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... ey are disposed of by a common judgment. 2.. We proceed to put on record the facts of the revision petition No. 57 of 1995 titled Assistant Commercial Taxes Officer, Ward-3, Kishangarh v. Kamla Textile Mills, Azad Nagar, Madanganj, Kishangarh. The facts are these. The manufacturing unit in question was owned by M/s. Sanjay Textiles, Kishangarh. It was engaged in the production and sale of cloth. It was entitled to the benefit of remission of tax on the purchase of raw material for a specific period under section 5CC of the Act. The relevant portion of this section 5CC of the Act is as hereunder: "5CC. Remission of tax on raw material for specified period.-(1) Notwithstanding anything contained in section 5 or section 5A, but subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m calling upon it to show cause as to why the assessment made under section 10 of the Act should not be re-opened and fresh assessment made. On March 11, 1988 the earlier assessment was re-opened under section 12 of the Act and a fresh assessment order passed. The petitioner proceeded to levy tax together with interest thereon under section 11B as also the penalty under section 7AA and further penalty under section 16(1)(n) of the Act to the tune of Rs. 5,541, Rs. 3,663, Rs. 16 and Rs. 31 respectively totalling Rs. 9,251. The respondent-firm filed an appeal before the Deputy Commissioner (Appeals), Ajmer, who dismissed it on September 29, 1989. It filed a second appeal before the Rajasthan Sales Tax Tribunal, Ajmer (later rechristened as Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70. It proceeded to notify that all industries with new units shall be treated to be notified industries for the purpose of section 5CC of the Act. This notification was amended on March 5, 1987 and it was made clear that a "new unit" means a factory or workshop using machinery or substantial parts thereof not already used or acquired for use in any other factory or workshop in Rajasthan under the same or changed ownership (underlining ours). These words "under the same or changed ownership" inserted with effect from March 5, 1987 go to show, so contends the learned counsel for the petitioner, that a transferee-firm shall get the benefit of section 5CC of the Act only if the transfer took place after March 5, 1987 and not if the transfer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d composition of the manufacturing unit. The benefit could not be denied merely because of the fact that it had changed hands before the expiry of the period of 5 years for which the benefit could be claimed. The learned counsel for the parties have pressed into service two single Bench decisions of the Rajasthan High Court. The first decision in Ergen Plastic Industries v. State of Rajasthan [1984] 57 STC 77, arose from the rejection by the assessing authority of the application which the petitioner-firm filed before it for issuance of forms ST 17A which were necessary for the purchase of the raw material at concessional rate under section 5CC of the Act. A proprietary concern which had been converted into a registered partnership firm m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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