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TMI Blog2009 (7) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... estic Farm House (P) Ltd. (hereinafter referred to as, "the company" for the sake of brevity) is a limited company incorporated under the Indian Companies Act, having its registered office at Ahmedabad. The unit is engaged in manufacture and production of ice cream of different varieties. The company is registered under the U.P. trade tax as well as Central sales tax. The company is established a new unit, which started production on January 24, 1997 and made the first sale on February 8, 1997. The unit filed an application in the requisite format for grant of exemption under section 4A of the U.P. Trade Tax Act, 1948 on July 15, 1997. It is relevant to point out that the company entered into an agreement on January 15, 1997 and January 20, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the site of an existing factory or workshop; but does not include any factory or workshop established on, or adjacent to the site of an existing factory or workshop manufacturing the same goods or; any addition to or extension of an existing factory or workshop. He further submits that on survey it was found that the unit of the opposite party was manufacturing the same goods and was situated in the same premises in which Vadi Lal Industries Ltd., exists, hence the unit does not come under the category of "new unit" as has been defined in section 4A, sub-section (6), Explanation (i)(d) of the U.P. Trade Tax Act, 1948. Thus, it has been established that the unit, which has been established for the manufacturing of ice-cream/ice-candy is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chaudhary, learned counsel, appearing on behalf of the opposite party, submitted that a new unit was established in pursuance to the conditions enumerate in the notification dated March 31, 1995 issued by the State Government under section 4A of the U.P. Trade Tax Act. The opposite party-company purchased a plot of land situate at D-23, Parsakhera, Bareilly from U.P. Financial Corporation. After purchasing the said land, it purchased new machinery and obtained registration as a smallscale industry from the Industries Department as well as a registration under the Factories Act. A copy of the said registration certificate has been filed as annexure CA-2 to the counter-affidavit. The Central excise licence was granted by the Central excise au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard 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. . ." The Full Bench of the Trade Tax Tribunal has found as a fact on the basis of the material on record that there was no merger order of the two companies, namely, Majestic Farm House Private Limited and Vadilal Industries Ltd., and only the manufacturing unit was transferred on September 23, 1997 by the opposite party-company to Vadilal Industries Ltd. It has also been held that the observation of the Divisional Level Committee that the opposite party-company exists only on paper is based on no materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire record and appreciating the evidence on record, has recorded a finding of fact that the two units, namely, one belonging to Vadilal Industries Limited and the other established by the opposite-party are situated on separate plots and were not situated in one premises. Further, the product manufactured by both the units were not identical, but of different varieties. Therefore, the Tribunal has rightly come to the conclusion that the opposite party is entitled for the eligibility certificate. From the record, it is established beyond that the company of the opposite party never seized to exist and it cannot be treated as an addition or extension unit of Vadilal Industries. Both the companies are owned by two distinct persons. In M.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner, it has come on record that the companies are maintaining separate production books, account books and excise record. It is also not disputed that the directors in both the units were separate and both the units are manufacturing different varieties of ice-creams bearing different code numbers. The revisionist has failed to establish that the director of the company who owned the existing unit controlled the unit themselves and the unit of opposite-party is nothing, but one man show of the one director. It is settled law that exemption can only be denied when the company, as a whole, has interest in other units, which is missing in the instant case. In view of above discussions, I find no infirmity and illegality in the impugned judgme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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