9911796707
TMI Blog2005 (1) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... irst sale was also made on the same day. Subsequently, the aforesaid partnership was re-constituted w.e.f. 31.03.1984 and as a result of the re-constitution, Sri Shyam Mohan Agrawal had gone out and Sunil Kumar and Sri B. Prasad joined the partnership as a partners. Industrial unit established by the partnership firm was duly registered with the Directorate of Industries as a Small Scale Industries. Re-constituted firm filed an application for exemption under Government Order No. 8244, dated 30.09.1982. The exemption was sought on the sale of the manufactured goods for the period of five years from 01.11.1983 to 31.10.1988. Application was rejected on 28.03.1987 without assigning any reason. Applicant filed Writ Petition No. 1 153 of 1987, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the parties. 4. Learned counsel for the applicant submitted that issue in the present case is squarely covered by the decision of this Court in Sales Tax Revision No. 948 of 1994 and 949 of 1994, Punjab Furniture House, Moradabad v. CST decided on 15.09.2004. Provisions to section 4-A of the Act as it stood on the date of first sale reads as follows: Section 4-A (1) Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is necessary so to do for increasing the production of any goods or for promoting the development of any industry in the State generally or in any districts or parts of districts in particular, it may on application or otherwise, in any particular case of generally, by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, for the grant, under this section of exemption from or reduction in the rate of tax for the unexpired portion of the period for which exemption from or reduction in the rate of tax was or could be to the former manufacturers: Provided that the aforesaid officer may, in its discretion and for adequate and sufficient reasons to be recorded in writing, entertain an application moved within six months of the date of the expiration of the period specified in this sub-section. 6. Further a proviso was added in 1991 by Act No. 28 of 1991, which reads as follows: Provided that where the succession took place before April 25, 1990, such application may be made by September 25, 1990, provided further that the Commissioner of Sales Tax ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e liable to pay the tax including penalty, if any, payable in respect of such business till the time of such transfer, whether the assessment is made or the penalty is imposed prior to or after such transfer. As a necessary corollary, it must follow that where the goods produced in a 'new unit' the exemption should be available to them irrespective of the fact that the ownership of the unit is transferred during the period for which the exemption has been granted, subject, of course, to the fulfillment of the conditions under which the exemption is to operate. 8. This court has repeatedly held that the object of Section 4A was to grant exemption to the manufacturer with the view to promote setting up a new industrial unit and irr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of Section 18 the manufacturer to whom the exemption was granted if succeeded by another successor manufacturer may apply to the competent officer within 60 days of succession for grant of exemption from or reduction at the rate of tax for unexpired portion for the period for which exemption from or reduction in the rate of tax was or could be to the former manufacturers. In my view Sub-section (2-B) of Section 4-A is not applicable in the present case for the following reasons: (1) period of exemption has been expired before the commencement of the provision and there was no unexpired period for exemption. Sub-section (2-B) applies to the claim of exemption for unexpired portion of the period which was not available in the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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