- (1.) THIS appeal is against the judgment dated 17th May, 1999 passed by the Allahabad High Court. Briefly stated the facts are as follows :
(2.) THE appellant, claiming to be a new unit, applied for exemption from sales tax under the provisions of the Uttar Pradesh Trade Tax Act, 1948 (hereinafter referred to as "the Act"). The Divisional Level Sales Tax Exemption Committee (hereinafter called "the Committee") rejected the application of the appellant, inter alia, on the following grounds : "1. Capital investment is more than 3 lakhs. Permanent registration has not been issued under the Factories Act. 2. Agreement of the land has been completed on Stamp-paper of Rs. 10 which is under registration. 3. Lists of the machines have not been received. Value of the building has not been certified from C.A. 4. On the date of production, the unit has not been registered." The appellant filed an appeal before the Trade Tax Tribunal. The Trade Tax Tribunal held that there was force in the submission that the committee should have given an opportunity of hearing to the appellant. However, it refused to interfere on the ground that admittedly the appellant's unit was on land in respect of which the appellant only had a registered agreement to sell. The Tribunal held that to avail of the exemption both land and building must be owned by the unit.
(3.) THE revision filed before the Allahabad High Court had been dismissed by the impugned judgment. The High Court has only considered one aspect, i.e., whether both land and building must be owned by the unit. The relevant provision reads as follows : "On land or building or both owned or taken on lease for a period of not less than seven years by such dealer or allotted to such dealer by any Government company or any corporation owned or controlled by the Central or the State Government." ;