COMMISSIONER OF TRADE TAX Vs. BHUSHAN STEEL AND STRIPS LTD.
LAWS(SC)-2014-1-97
SUPREME COURT OF INDIA
Decided on
January 28,2014
COMMISSIONER OF TRADE TAX
Appellant
VERSUS
Bhushan Steel and Strips Ltd.
Respondents
Referred Judgements :-
CHALLAPALLI SUGAR LIMITED C I T CENTRAL CALCUTTA VS. COMMISSIONER OF INCOME TAX A P HYDERABAD:HINDUSTAN PETROLEUM CORPORATION LTD [REFERRED TO]PUNJAB LAND DEVELOPMENT AND RECLAMATION CORPORATION LIMITED CHANDIGARH DIVISIONAL CONTROLLER MAHARASHTRA STATE ROAD TRANSPORT CORPORATION AMRAVATI REGIONAL MANAGER WEST ZONE NOW KNOWN AS KANPUR REGION BANK OF BARODA REGIONAL OFFICE LUCKNOW VS. PRESIDING OFFICER LABOUR COURT CHANDIGARH:CHANDRASHEKHAR MARIBHAU DESHMUKH :SECRETARY U P BANK EMPLOYEES UNION C O BANK OF BARODA LATOUCHE ROAD KANPUR :LABOUR COURT RANCHI:NAMDEO:SECRETA [REFERRED TO]
FEROZE N DOTIVALA VS. P M WADHWANI [REFERRED TO]
COMMISSIONER OF TRADE TAX U P VS. KAJARIA CERAMICS LTD [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MOTOR INDUSTRIES COMPANY LIMITED [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. POLYCHEM LIMITED [REFERRED TO]
JUDGEMENT
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(1.)Leave granted. This appeal, filed by the revenue is directed against the judgment and order of the High Court of Judicature at Allahabad, Lucknow Bench, Lucknow in Tax Revision No. 20 of 1997, dated 29.10.2009, whereby and whereunder the High Court has allowed the revision petition filed by the Respondent herein.
(2.)The facts of the case are: the Respondent-assessee before us is a public limited company which had established a new unit for manufacturing and sale of C.R. Strips. The Assessee had applied for grant of eligibility certificate under Section 4A of the Uttar Pradesh Trade Tax Act, 1948 (for short "the Act"). The Assessee was issued the said certificate on the original fixed capital investment of Rs. 542.28/- lacs for a period of six years with effect from 07.03.1990. Later, the Assessee had sought for exemption under diversification, modernization/expansion programme on total fixed capital investment including additional fixed capital investment to the extent of Rs. 7378.68/- lac. The Divisional Level Committee allowed the investment of Rs. 5511.98/- lac for the purposes of computing the benefit of exemption and disallowed exemption on certain items by order dated 23.12.1995.
(3.)Being aggrieved by the aforesaid, the Assessee filed an appeal before the Uttar Pradesh Tribunal, Trade Tax, Lucknow (for short "the Tribunal"). 'The Tribunal had allowed the claim of the Assessee as follows:
(a) Only the Additional Fixed Capital Investment, which has been made by the Appellant in expansion/ modernization/diversification of its Industrial Unit shall qualify for granting exemption from Trade Tax.
(b) The investment made on construction of Temple, Canteen, Time Office and Check Post, amounting to Rs. 15,11,000/- has been wrongly disallowed by the Divisional Level Committee, Meerut and this amount should be included in the Fixed Capital Investment for the purpose of granting exemption from Trade Tax.
(c) The investment made on Transformer/CVT, Exhaust Fan, and investment in obtaining study report etc., a total of Rs. 60,92,252.17 should also be included in the Fixed Capital Investment.
(d) The preoperative expenses amounting to Rs. 7,56,30,000/- should also be included in the Additional Fixed Capital Investment for granting benefit of exemption from Trade Tax, to the Appellant.
(2.)The facts of the case are: the Respondent-assessee before us is a public limited company which had established a new unit for manufacturing and sale of C.R. Strips. The Assessee had applied for grant of eligibility certificate under Section 4A of the Uttar Pradesh Trade Tax Act, 1948 (for short "the Act"). The Assessee was issued the said certificate on the original fixed capital investment of Rs. 542.28/- lacs for a period of six years with effect from 07.03.1990. Later, the Assessee had sought for exemption under diversification, modernization/expansion programme on total fixed capital investment including additional fixed capital investment to the extent of Rs. 7378.68/- lac. The Divisional Level Committee allowed the investment of Rs. 5511.98/- lac for the purposes of computing the benefit of exemption and disallowed exemption on certain items by order dated 23.12.1995.
(3.)Being aggrieved by the aforesaid, the Assessee filed an appeal before the Uttar Pradesh Tribunal, Trade Tax, Lucknow (for short "the Tribunal"). 'The Tribunal had allowed the claim of the Assessee as follows:
(a) Only the Additional Fixed Capital Investment, which has been made by the Appellant in expansion/ modernization/diversification of its Industrial Unit shall qualify for granting exemption from Trade Tax.
(b) The investment made on construction of Temple, Canteen, Time Office and Check Post, amounting to Rs. 15,11,000/- has been wrongly disallowed by the Divisional Level Committee, Meerut and this amount should be included in the Fixed Capital Investment for the purpose of granting exemption from Trade Tax.
(c) The investment made on Transformer/CVT, Exhaust Fan, and investment in obtaining study report etc., a total of Rs. 60,92,252.17 should also be included in the Fixed Capital Investment.
(d) The preoperative expenses amounting to Rs. 7,56,30,000/- should also be included in the Additional Fixed Capital Investment for granting benefit of exemption from Trade Tax, to the Appellant.
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