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TMI Blog2007 (10) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... , "the Act") is directed against the order of Full Bench of the Tribunal dated March 24, 2003. Brief facts of the case giving rise to the present revision are that the applicant is a company incorporated under the Indian Companies Act, 1956, of which Sri Arvind Kumar Bhasin was the Managing Director. The company was incorporated in the year 1994. It appears that with the intent to establish a new unit for the manufacturing of synthetic resins and paints, Shri Arvind Kumar Bhasin applied for the allotment of industrial plot at Greater Noida with the U.P. State Industrial Development Corporation Limited (hereinafter referred to as, "the UPSIDC") vide letter dated January 17, 1994. After the receipt of the letter dated January 17, 1994, UPSIDC vide letter dated January 27, 1994 asked Shri Arvind Kumar Bhasin to file an application in a requisite form for the allotment of the land. In pursuance thereof, application in the proper form was furnished with the project profile showing the total investment about Rs. 73.50 lacs. On March 5, 1994 the UPSIDC allotted 4,000 sq. meters of land. On June 15, 1994 Shri Arvind Kumar Bhasin moved an application with the Regional M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny from the proprietorship business, Shri Arvind Kumar Bhasin became the Managing Director of the company. Thereafter, company applied for the term loan. After May 26, 2002 an application was moved for the exemption on the turnover of the manufactured product under section 4A of the Act. On the receipt of the application, it was processed and thereafter, show cause notice was issued by the Divisional Level Committee raising objections that as per Notification No. NI-2-3867/XI-9(116)/94-U.P. Act-15/48-Order-(74)-2001, dated December 22, 2001, the applicant had not fulfilled the conditions as on March 31, 2000, namely, the unit was not registered with the Director of Industries for paints; the application for the term loan was given to Uttar Pradesh Finance Corporation after May 26, 2000; intimation letter to the assessing authority was not given within twenty days. Letter dated January 10, 2002 sent under the certificate of posting had been denied to have been received. The applicant filed reply to the show cause notice. The Divisional Level Committee on the consideration of the reply rejected the application for the three reasons mentioned in the show cause notice dated December 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 when the permission in this regard was granted and in this view of the matter unit was owned by M/s. Akross Synthetics Private Limited on January 22, 2000 when merger took place. Admittedly, the application for the term loan with the UPFC was moved by the applicant-company after May 26, 2002 and in pursuance of which term loan was granted. He further submitted that as on March 31, 2000 the unit was not registered with SSI in respect of the paints. SSI registration was granted on November 26, 2002 showing the date of production on October 30, 2001. Prior to this date, no certificate was issued to the applicant-company. Therefore, as on March 31, 2000 the applicant unit it was not registered with SSI. Having heard learned counsel for the parties, I have perused the order of the Tribunal and the authorities below. Relevant Notification No. KA. NI-2591/XI-9(116)/94-U.P. Act-15-48Order (28)-2000, dated August 24, 2000 and Notification No. KA. NI.-23867/XI-9(116)/94-U.P. Act-15-48-Order-(74)-2001, Lucknow, dated December 22, 2001 read as follows: "Notification No. KA. NI-2-2591/XI-9(116)/94-U.P. Act-15-48Order (28)-2000, dated August 24, 2000. Whereas the State Government is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31, 2001, no tax shall be payable, or as the case may be, the tax shall be payable at the reduced rate, by the manufacturer thereof on the turnover of sales of such goods from the date of first sale or the date following the expiration of six months from the date of starting production, whichever is earlier. (b) in respect of any goods manufactured in a unit which has undertaken expansion and the date of production in excess of the base production falls on or before March 31, 2000, no tax shall be payable, or as the case may be, the tax shall be payable at the reduced rate, by the manufacturer thereof on the turnover of sales of the quantity of goods manufactured in excess of the base production. (c) in respect of any goods manufactured in a unit which has undertaken diversification and the date of production of goods of a nature different from those manufactured earlier by such units falls on or before March 31, 2000, no tax shall be payable, or as the case may be, the tax shall be payable at the reduced rate by the manufacturer thereof on the turnover of sales of goods, which are of a nature different from those, manufactured by the unit earlier: Provided that the unit inten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31, 2000. Admittedly, the applicant had not applied for term loan prior to March 31, 2000. The term loan was applied after May 26, 2000 by the applicant-company much after March 31, 2000. In the circumstances, the applicant could not fulfil the requirement of the notification for the grant of exemption. It is nobody's case that the term loan was sanctioned in pursuance of the applications moved in the year 1994. The term loan was sanctioned in pursuance of the application moved by the company much after March 31, 2000. The "new unit" established after March 31, 1990 is defined by the Explanation II to section 4A of the Act, which says that the new unit after March 31, 1990 means a factory or workshop set up by a dealer after such date and satisfying the conditions laid down under this Act or Rules or Notifications made thereunder with regard to such factory or workshop and includes an industrial unit manufacturing the same goods at any other place in the State or an industrial unit manufacturing any other goods on, or adjacent to the site of an existing factory or workshop but does not include . . . The above definition provides that only those units which fulfil t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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