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TMI Blog2000 (1) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year ensuing the date of expansion, the respondent-assessee manufactured its own goods to the tune of 1,447.489 M.T. and also manufactured the goods by doing the job-work. In all it gave production to the extent of 2,193.76 M.T. 3. The respondent-assessee's unit applied for grant of eligibility certificate under the provisions of the Rajasthan Sales Tax New Incentive Scheme for Industries, 1989 (for short "the Scheme of 1989") as an expansion unit. The requisite conditions for considering the unit eligible for grant of eligibility certificate as an expansion unit are contained in clause 2(f) of the Scheme of 1989, which reads as under: "2(f). 'Expansion' means increase in the value of fixed capital investment by not less than 25 per cent of the net fixed assets of the existing project and accompanied by an increase in the production to the extent of at least 25 per cent of the original licensed/registered capacity. Explanation: The benefits of sales tax incentive for expansion shall be admissible to the eligible units only after they have achieved at least 85 per cent of their licensed/registered capacity before expansion." 4.. A perusal of the aforesaid provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at a unit should utilise fully its originally licensed/registered capacity of manufacture or production and should have further achieved 25 per cent excess to that capacity in production. The Tax Board also held that there is no requirement that the entire production in order to make the unit eligible for grant of benefit under the incentive scheme must be of its own account and not by way of any job-work. In this view of the matter, the Tax Board allowed the appeal filed by the respondent-assessee and directed the DLSC to issue necessary eligibility certificate to the respondent-assessee vide its order dated February 9, 1999. Hence this revision by the Revenue. 7.. I have heard Mr. Sanjeev Johari, the learned counsel appearing for the Revenue and Mr. inesh Mehta, the learned counsel for the respondent and have carefully gone through the record of the case. 8.. Mr. Sanjeev Johari, the learned counsel for the Revenue, urges that the Scheme of 1989 was brought into force vide Notification No. F.4(35)FD/Gr. IV/87-38 dated the July 6, 1989 and the said notification dated July 6, 1989 reads as under: "In exercise of the powers conferred by sub-section (2) of section 4 of the Rajas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Incentive Scheme, 1989 clearly provides that ineligible industries shall not be given any benefit under this notification. 12.. Clause 2(a) defines "New industrial unit" means an industrial unit which commences commercial production during the operative period of the New Incentive Scheme but will not include: (i) an industrial unit established by transferring or shifting or dismantling an existing industry; and (ii) an industrial unit established on the site of an existing unit manufacturing similar goods. Clause 2(j) also defines "ineligible industries". Obviously, we are concerned with "expansion unit" and, therefore, the definition given to term "expansion " is reproduced hereinabove. 13.. It is relevant to mention here that clause 2(j) defines "ineligible industries" means the industries listed in annexure B appended to this notification which will not be eligible for sales tax incentives provided that the restriction imposed in this clause shall not apply to a sick unit as defined in sub-clause (b) of this clause. Thus, it is clear that ineligible industries as defined in clause 2(j) of the Incentive Scheme, 1989 does not exclude the units engaged in activity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne major feature of the scheme is that it does not exempt the commodity from tax but subjects all the sales which fall in the category of taxable turnover to tax and exempts the dealer owning the eligible unit from payment of tax by adjusting the same to maximum limit of quantum upto which it is computed with reference to its capital investment. If even after fulfilling all the conditions of eligibility, a unit does not make any taxable sales or engage in activity which is subject to tax, he may not be able to avail benefit of the scheme in respect of such goods. But such inability to avail benefit of exemption cannot lead to any inference that he has not manufactured those goods. Nor can his failure to sell the goods manufactured by him affect its eligibility to exemption in respect of transactions for which he can by lay such claim. 17.. The aforementioned decision of the Supreme Court in Prestige Engineering (India) Ltd's case [1994] 6 SCC 465 rather supports the assessee-respondent. Prestige Engineering (India) Ltd's case [1994] 6 SCC 465 was a case under the Central Excises and Salt Act and related to the scope of notification granting exemption to the goods produced on job- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee at the rate of 3 per cent under section 8(1)(b) of the Central Act. The goods purchased by the assessee were used partly for sizing, bleaching and dyeing of textiles belonging to the assessee and partly for sizing, bleaching and dyeing of textiles belonging to third parties on job-basis. The assessee was served with a show cause notice under the Central Sales Tax Act on the ground that the assessee had been misusing the certificate of registration by doing sizing, bleaching and dyeing for third parties on job-basis. In those circumstances, the question very much similar to the one raised in the present case arose before the honourable Supreme Court. 20.. The court held that "a statute must be construed according to its plain language and neither should anything be added nor should anything be subtracted unless there are adequate grounds to justify the inference that the Legislature clearly so intended". 21.. On merit, the court found that "the expression used by the Legislature as well as the rule-making authority was simply "for use......in the manufacture........of goods for sale" without any addition of words indicating that the sale must be by any particula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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