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TMI Blog2001 (9) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... g rise to the instant revision petition are that the respondent-unit moved an application to the District Level Screening Committee, Rajsamand (hereinafter referred to as "the D.L.S.C.") for the grant of eligibility certificate under the Rajasthan Sales Tax New Incentive Scheme for Industries, 1989 (hereinafter referred to as "the Scheme of 1989") as an expansion unit. The D.L.S.C. rejected the application on the ground that the unit was not doing manufacturing work but job work of marble tiles. Accordingly rejected the application. The respondent preferred an appeal against the decision of the D.L.S.C. before the Tax Board, Ajmer. During the pendency of the appeal in identical matter of M/s. Zohara Marbles Tiles Pvt. Ltd., the State Level ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the definition of manufacture under section 2(f) of the Rajasthan Sales Tax Act". Learned arguments have been advanced on the said question by Mr. Sanjeev Johari, learned counsel for the department and Mr. N.L. Pokharna, learned counsel for the assessee. Before I advert to the contentions raised by the learned counsel for the parties, it will be convenient to acquaint with the relevant provisions of the Rajasthan Sales Tax Act and the Incentive Scheme of 1989. 5.. The Rajasthan Sales Tax Act, 1994 has been enacted to consolidate and amend the law relating to levy of tax on sale and purchase of goods in the State of Rajasthan. Section 2 is the dictionary provision. Sub-section (27) of section 2 defines "manufacture" as follows: "'ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit established on the site of an existing unit manufacturing similar goods. Sub-clause (f) of clause (2) defines "expansion", which reads as under: "Expansion" means increase in the value of fixed capital investment by not less than 25% of the net fixed assets of the existing project and accompanied by an increase in the production to the extent of at least 25% 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% of their licensed/registered capacity before expansion. Clause 3 deals with the "Applicability of the New Incentive Scheme", which reads as under: Applicability of the New Incentive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... market, thus the activity of the respondent cannot be construed as "manufacture" for the purpose of exemption from the sales tax under the Incentive Scheme of 1989. My view is buttressed from the decision of the apex Court in Prestige Engineering (India) Ltd. v. Collector of Central Excise, Meerut reported in (1994) 6 SCC 465 wherein it is held that the manufacture must be of those goods, which could be sold by it and not a manufacture of goods for others. 8.. Recently the apex Court in the case of Ashirwad Ispat Udyog v. State Level Committee reported in [1999] 112 STC 207 while dealing with the definition of manufacture given in the Madhya Pradesh General Sales Tax Act, 1958 held that: "In the special definition of 'manufacture' given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Scheme considering the "unit as a new unit". In my view, the Tax Board was in obvious error in considering a new case of the assessee which was not before the D.L.S.C. A person who claims exemption from tax, it is for him to set up and establish that his case falls within the four corners of the statutory provisions providing exemption. The exemption provision must be construed strictly. In case of doubt or ambiguity, the benefit must go to the State. It is always on the person invoking the provision of exemption to establish factually and legally that it is covered by such exemption provision, because such exemption increases the tax burden on the other citizens of the State. My view is fortified by a decision of the apex Court rendered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the principle that in a taxing statute, there is no room for any intendment, that regard must be had to the clear meaning of the words and that the matter should be governed wholly by the language of the notification, i.e., by the plain terms of the exemption." 10.. As the respondent-assessee did not claim benefit of the incentive scheme under the head new industrial unit before D.L.S.C., it was not open for the Rajasthan Tax Tribunal to entertain a new case of the assessee and direct the taxing authorities to give benefit of the Incentive Scheme under the head of new industrial unit. 11.. It is lastly contended by Mr. Pokharna, learned counsel, that the case of the respondent-assessee is covered by the decision of the Rajasthan Tax Boa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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