(1.) Being a manufacturer, revisionist applied for exemption in respect of raw materials and other products under section 4-B of the U.P. Trade Tax Act, 1948. In the application, amongst others, it was mentioned that the revisionist uses, for manufacturing purpose, fuel. Exemption was granted, but, while granting the same, the word "fuel" was not specifically mentioned. This exemption was granted on May 18, 1995 with effect from October 20, 1994. Proceeding on the basis that the revisionist was entitled to exemption for fuel also, exemption was accorded to it in respect of high speed diesel purchased by the revisionist for running generators, right from the date of the exemption becoming effective until a few months before Trade Tax Act became non-applicable. During this few months' period prior to the date of coming to an end the Trade Tax Act, which was replaced by the VAT Act, it was held out by the assessing officer that, since, while granting exemption, the word 'fuel' was not mentioned, revisionist is not entitled to exemption on high speed diesel. The order of the assessing officer was accepted by the appellate authority. The revisionist, accordingly, approached the Tribunal. The Tribunal noticed that, while making the application, amongst others, it was clearly indicated that the revisionist is also seeking exemption in respect of fuel used for manufacturing activity. The Tribunal, therefore, as it appears, proceeded on the basis that fuel must be deemed to have been exempted. The Tribunal, however, felt that high speed diesel was not fuel used for manufacturing and, accordingly, exemption thereon was not available. The Tribunal also held that, subsequent to grant of the exemption, revisionist had applied specifically for exemption for LD oil for factory generators and, in such circumstances also, the revisionist was not entitled to exemption for high speed diesel. The Tribunal also held that, since exemption for LD oil was specifically asked for and was not granted, the revisionist was not entitled to exemption on LD oil too. It was not, however, disputed by the assessing authority, the appellate authority and the Tribunal that, to run generators, either high speed diesel or LD oil is required. It was also not disputed by the assessing authority or by the appellate authority or by the Tribunal that the revisionist did purchase high speed diesel or LD oil for running generators. The question was, whether either of them or both of them could be treated as fuel. The fact remains that fuel is that thing, which encourages generation of heat. High speed diesel or LD oil were used for that purpose only. The heat produced by them generated electricity. It is not in dispute that such electricity was used in the manufacturing activity. Accordingly, the conclusion that high speed diesel or LD oil, procured by the revisionist, was not fuel, is interferable. There is not a single whisper anywhere in any of the records that the electricity generated by use of such oil was not used for manufacturing activity. Section 4-B of the U.P. Trade Tax Act, 1948 allows exemption in respect of those materials, which have been used for the purpose of manufacture.
(2.) We, accordingly, allow the revision application and set aside the order of the Tribunal, of the appellate authority as well as of the assessing authority.;