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TMI Blog2010 (1) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... nes and manufacturing aerated beverages or marketing in consumer convenient glass bottles, running of the factory or workshop is impossible unless such glass bottles and shells are used simultaneously in the machine itself for filling the beverages and under the circumstances whether the Tribunal was justified in overlooking this important aspect of the word 'fixed capital investment' under section 4A of the U.P. Trade Tax Act by merely relying upon the decision under the Bihar Act, namely, Bihar Deferment Rules, where the definition of 'fixed capital investment' is not identical and is restricted to 'fixed assets'? (ii) Whether the Trade Tax Department having allowed the investment made in bottles and crates to oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew proceedings before the Divisional Level Committee inasmuch as the eligibility certificate itself was granted on 26th May, 2000 and the review application was filed thereafter in 2000 which came up for consideration in March, 2001? (v) Whether in any view of the matter, the order passed by the Trade Tax Tribunal dated May 14, 2002 is illegal and is liable to be quashed?" The facts of the case are that the assessee is a public limited company, which established a new industrial unit at 107 kms. distance stone, AgraDelhi Highway at Village Dautana, Tehsil Chhatta in the district of Mathura. The new unit established by the assessee applied for the grant of eligibility certificate under section 4A of the U.P. Trade Tax Act read with Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed exemptions on bottles and crates as "fixed capital investment" under the provisions of Explanation (4)(b)(i) to section 4A of the Act, which reads as hereinunder: "(4) 'Fixed capital investment' means value of land and building and such plants including captive power plant, machinery, equipment, apparatus, components, moulds, dyes, jigs and fixtures, as have not been used in any other factory or workshop in India: Provided that- (a) . . . (b) for the purposes of determining value of plants including captive power plant, machinery, equipment, apparatus, components, moulds, dyes, jigs and fixtures only the following shall be taken into account: (i) investment, whether by means of purchase, hire or lease in such plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, moulds, dyes, jigs and fixtures. His argument is that the glass bottles and crates are the absolutely necessary for the unit of soft drink as without the use of these apparatus, the manufacture of soft drink would not be complete. He has also argued that unit of the assessee is the captive industry which is a one-line process in which liquid is being manufactured by way of the continuous process and bottled in the glass bottles and thus, the bottles and crates which are used for collecting the liquid soft drink are absolutely essential for the running of the beverage factory and therefore should be included within the meaning of "apparatus" used for the Explanation itself. The learned counsel for the assessee has relied on a decision i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 years is concerned, the order passed by the Tribunal enveloping that part of the order passed by the Divisional Level Committee also is bad as there is no discussion why the review order on this point has been set aside, especially in view of the fact that the Department when it went in appeal had made no prayer that the period of exemption should be cut down from 15 years as granted in the review to any other period. Therefore this part of the order in appeal is also bad and is set aside. However the exemptions granted for 15 years will continue. Thus all questions are answered in favour of the assessee and against the Department. The order of the Tribunal dated May 14, 2002 is set aside. The revision is allowed as above. No costs. &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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