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TMI Blog2000 (3) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... t the dealer filed appeal before the Tribunal. The Tribunal has dismissed the appeal, hence this revision is filed by the dealer. 2.. It is not disputed that the unit which the dealer claims to be a new unit was purchased by it from U.P. Financial Corporation in 1994. The dealer s claim is that the date of first sale by the revisionist was June 10, 1994. The dealer claimed that fixed capital investment in respect of land and building was Rs. 25,97,000 and in respect of plant and machinery it was Rs. 47,28,000. The Divisional Level Committee allowed the claim in respect of land and building only to the extent of Rs. 9,25,000 on the ground that up to the date of first sale the dealer had paid only Rs. 8,81,000 for the land and balance for r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of new unit after March 31, 1990 though states that the new unit does not include any factory or workshop using machinery, plant or equipment, apparatus, components already used or acquired for use in any other factory or workshop in India; but it includes factory, workshop, etc., sold to it by any Government company or any corporation owned or controlled by the Central or State Government. Submission of Sri Bharat Ji Agrawal is that the unit in question was established after March 31, 1990 and was purchased by the revisionist in the year 1994 from the U.P. Financial Corporation which is controlled by the State Government. Therefore, the exclusion clause as provided in Explanation (2)(a) in respect of machinery, etc., already used or ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of starting production..........be exempt from trade tax whether wholly or partly. The revisionist claimed benefit of exemption in view of Notification No. S.T.2-1093/XI-7(42)-68-U.P. Act XV-48-Order-90 dated July 27, 1991 issued by the State Government under section 4-A(1) of the Act. Clause (1-A) of the notification provided that the period of facility shall be reckoned from the date of the first sale, or the date following the expiration of six months from the date of starting production, whichever is earlier. Clause (4) of the notification provides that in determining the fixed capital investment............ the investment in only such land, building, etc., shall be taken into account as were acquired on or before relevant date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State or an industrial unit manufacturing any other goods on or adjacent to the site of an existing factory or workshop, but does not include- (a) any factory or workshop using machinery, plant, equipment, apparatus, or components already used in other factory or workshop in India other than boilers, generators, moulds and dyes and other than any machinery, plant, equipment, apparatus or components sold to it by any Government company or any corporation owned or controlled by the Central or State Government: Provided .........................." 7.. It is thus evident that the definition of the "new unit" given in Explanation (1) relates to the units set-up during the period ending March 31, 1990 whereas the Explanation (2) define ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal as well as by the Divisional Level Committee. Once the revisionist s unit is covered by the definition of the "new unit" as contained in Explanation (2) its case shall have to be considered in the light of clause (a) of Explanation (2) and not in the light of clause (d) of Explanation (1). Both the Divisional Level Committee as well as the Tribunal fell in error in holding that the purchase of the plant and machinery by the revisionist from U.P. Financial Corporation was acquired for use by another factory and therefore, the revisionist was not entitled to exemption in respect of fixed capital investment in such plant and machinery, etc. The matter therefore, deserves to be remanded to the Tribunal for reconsideration in this lig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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