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TMI Blog2014 (1) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... f the production and maximum production of any one year of preceding five consecutive years. Such determined quantity of base production is the basis for the exemption for the period, for which the unit is entitled for exemption. The unit which has undergone expansion is thus entitled for the exemption on the turnover of the quantity in excess of the "quantity of base production" plus stock of the base production of the previous years - assessment/reassessment/penalty/deferment proceedings will be decided by the Assessing Authority in accordance with law laid down by the Full Bench - Following decision of Ambika Steels Pvt Ltd Vs. State of U.P. & others [2007 (9) TMI 541 - ALLAHABAD HIGH COURT]. - Writ Tax No. - 781 of 2009 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O Ltd Vs. State of U.P. and others [writ petition (Tax) No. 1715 of 2007 decided on 16.12.2007], with regard to interpretation of clauses 1 (b) and 7 (a) and 7 (b) of the Notification dated 31.3.1995, which is in conflict with the decision of the Supreme Court in Commissioner of Trade Tax, U.P Vs. Modipan Fibres Co [2006 (6) SCC 577], the matter requires reconsideration, and accordingly it referred the matter to a Larger Bench. 6. A bench of three Hon'ble Judges was constituted by the Hon'ble Chief Justice, which considered and decided the reference with following conclusions:- "CONCLUSION In view of the foregoing discussion, we are of the view that under the notification no. 640 dated 21.2.1997 the unit undergone expansion is entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted in that event the unit will be entitled to exemption on branch transfer as well as on consignment sale without paying any trade tax either in the State of U.P., or Central, and would also at the same time be entitled to the exemption from, or reduction in trade tax on the production, over and above the base production, which was not the intention of the notification. The exemption on the stock transfer, or transfer of goods for consignment sale, is by the operation of law inasmuch as they do not fall within the purview of sale. This benefit is available even to the existing Units. Under Section 4-A of the Act and the notifications issued thereunder the benefit of exemption to the existing units, which have undergone expansion, diversi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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