Sen, J. - (1.) leave granted.
(2.) The appellant, Shree Bhagwati Roller Flour Mills, carries on business of purchases of wheat and manufacturing and selling Atta, Maida and Suji therefrom. Section 4 of the U. P. Sales Tax Act has empowered the State Government to grant exemption to any dealer from payment of sales tax and purchase tax, if the Government is of the opinion that it is necessary to do so for the purpose of increasing production of goods or for permitting development of industries in the State generally or in any particular district or in any part of a district. The case of the appellant is that it is a new unit recognised by the Government and it has been given an eligibility certificate for a period of six years from 10-8-1983 to 9-8-1989. The appellant has also been given a recognition certificate under Section 4-B of the Act.
(3.) The appellant purchased wheat from the market for manufacturing Atta, Maida and Suji which were notified commodities. The appellant's case is that it should be exempted from paying purchase tax from the purchase made by it because it is a new unit and has been exempted from purchase and sales tax under the Incentive Scheme evolved by the State Government for the development of industries in the State. Secondly, the goods purchased by the appellant were used as raw material for manufacturing notified commodities. Therefore, on both counts no purchase tax should be levied on the purchases of notified commodities by the appellant.;