9911796707
TMI Blog2002 (7) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner, registered under the U.P. Trade Tax Act, 1948 (in short called as "the Act") and under the Central Sales Tax Act, 1956, as manufacturer of PVC pipes and fittings was granted exemption under section 4-A of the Act and was issued eligibility certificate dated March 26, 1998 (annexure 1) from payment of tax for the period of ten years, w.e.f. September 25, 1995 to September 24, 2005 or to the extent of 200 per cent of the fixed capital investment whichever is earlier. In the eligibility certificate the date of starting production has been mentioned as July 31, 1995 and the date of first sale was mentioned as September 25, 1995 from which date the period of exemption of ten years was given. The petitioner undertook expansion of the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In a detailed reply dated November 14, 2000 it was specifically mentioned that no proceeding under section 4-A(3) could be legally taken on the two grounds, namely, (1) the date of initial production being July 31, 1995 and the date of crossing the base production under the scheme of expansion being August 30, 1996 and (2) the exemption granted to the extent of 200 per cent of the additional fixed capital investment, both were not sustainable (annexure 5). 6.. Aggrieved by the aforesaid order, the petitioner has filed an appeal before the Trade Tax Tribunal, Lucknow, along with stay application and along with an affidavit for staying the operation of the order dated April 23, 2002. 7.. The section 10(2) of the U.P. Trade Tax Act provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the application on the ground that the expansion has been made by the petitioner-unit before the completion of one assessment year, even though there was no disputed amount of tax. 10.. I have gone through the contents of the Trade Tax Tribunal and the record. The expansion has been made before the expiry of one year. The field of eligibility under explanation (5) to section 4-A is one thing and the grant of exemption under the scheme of explanation after crossing the base production is another thing. In the report of the Assistant Commissioner it has been indicated that the petitioner is not a defaulter as stated under clause (a) and have also made investment of more than 25 per cent of the original fixed capital investment, without p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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