9911796707
TMI Blog2000 (9) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... ification dated February 13, 1987, which is evident from serial numbers 26-D(iii) and 30-FF of the list of taxfree goods, provided the petitioner's industry does not fall within the 31 categories of items mentioned in the said list. Serial number 2 of the said ineligibility is with regard to flour mill. As required under the guide-lines, the Director of Industries has also issued necessary eligibility certificate for purchase of raw materials, spare parts and packing materials on a finding that the unit has made investment in land, building, plant and machinery from April 1, 1986. As per the PMT, the unit has commenced commercial production from February 4, 1989, which is admitted in the eligibility certificate vide annexure 3. Similar elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of tax on the turnover of besan manufactured by the petitioner had been wrongly allowed, which is prejudicial to the interest of the revenue. In the said notice, he expressed his prima facie opinion that besan is manufactured in flour mills which is an ineligible industry for grant of incentive. The Assistant Commissioner then passed orders holding that the turnover for the period 1989-90 amounting to Rs. 89,87,338.51 is taxable at the rate of 10 per cent and raised a demand of Rs. 89,873.39. The notice and the order of the Assistant Commissioner are at annexures 9 and 10 respectively. Being aggrieved by the aforesaid order, the petitioner filed tax appeal before the Commissioner of Sales Tax, who confirmed the order by holding that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring besan out of dal" clearly indicates that flour mill does not include a mill producing besan out of dal. As such, the conclusion of the Assistant Commissioner as well as the Commissioner in annexures 10 and 11 is not tenable in law. We, therefore, hold that from the date of its commercial production, i.e., from February 4, 1989, the petitioner is entitled to exemption for a period of seven years on the sale of its finished products and five years for purchase of raw materials, spare parts and packing materials in accordance with law. 5.. For the foregoing discussions, we quash the notice of the Assistant Commissioner in annexure 9 and the consequential orders of the Assistant Commissioner and the Commissioner in annexures 10 and 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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