9911796707
TMI Blog2004 (12) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant herein purchased the said small-scale industrial unit (SSI) in a public auction and had been put in possession of the same on November 25, 1992 by KSFC. The appellant, while filing the annual returns for the assessment year 1993-94 had claimed exemption from payment of tax under the KST Act and also under the Central Act under a bona fide belief that it is a new industrial unit and therefore, was entitled for the benefit of the notification issued by the State Government bearing No. FD 101 CSI 87(1) dated June 7, 1989. The claim of the appellant was rejected by the assessing authority while concluding the assessment by its order dated July 5, 1995. Aggrieved by the same, the appellant had preferred an appeal by producing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FD 101 CSI 87(1) dated June 7, 1989 he strenuously contended that the goods manufactured and sold by the SSI unit enjoyed certain exemptions mentioned thereunder irrespective of the ownership of the industry. Further, according to the counsel for the appellant, as the present SSI unit was purchased in a public auction by the appellant, it only signifies change of symbolic possession, therefore, all the benefits under the said notification available to the earlier unit, i.e., M/s. Indumati Industries are also available to the present appellant. Hence, the appellant contends that in all force and in all respects, the previous concern, i.e., the unit remains the same except change of ownership. According to the learned counsel for the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent certificate No. 09-17-02030-PMT-SSI dated May 31, 1988 to February 3, 1995 and the said industrial unit is a small-scale industry engaged in the production of fried gram. The production was commenced by M/s. Indumati Fried Gram Industries but the said M/s. Indumati Industries unit has been transferred to Mr. Sathyanarayana, proprietor of M/s. Nandakishore Industries on November 7, 1992 by KSFC. The question that arises for our consideration is whether the appellant is running a new unit or an old unit? The original owner of the machinery was M/s. Indumati Industries which was purchased by the present appellant, i.e., M/s. Nandakishore Industries. M/s. Indumati Industries had the registration relating back to the year 1988. When they we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of notification whichever is later." On verification of the said table, Explanation I reads as under: "For the purpose of this notification, the term 'Tiny industrial unit' or 'S.S. industrial unit' means an industrial unit satisfying the following conditions: (i) . . . (ii) . . . (iii) No part of the plant and machinery installed by the unit is an old, used or second hand one. Explanation II. -- The provisions of this notification shall not be applicable to, -- (i) the units whose investment are for expansion/diversification and modernisation of an existing industrial unit or to a unit established in a different name after the closure of another industrial unit, which existed prior to 1st April, 1988." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that is important and not the person, the very fact that the part of the unit, i.e., plant and machinery installed in M/s. Nandakishore Industries when it commenced production is an old one or in other words, a second hand one, the appellant/assessee who is running the said industry will not be able to get the benefit of exemptions under the abovesaid notification. By virtue of purchase of the unit belonging to M/s. Indumati Industries by the proprietor of M/s. Nandakishore Industries (the appellant herein), the unit becomes a second hand one. The appellant has claimed exemption of tax in respect of production and sale of the fried gram by M/s. Nandakishore industries. When M/s. Nandakishore Industries commenced the production, it was an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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