P.K.JAIN, J. - (1.) These two revisions arise out of the order passed by the Full Bench of the Trade Tax Tribunal, Lucknow in Second Appeal No. 73 of 1996 (Kajaria Ceramics Ltd. v. Divisional Level Committee). The appeal was partly allowed and partly dismissed by the Tribunal. Revision No. 700 of 1997 has been filed by the assesses being aggrieved by part dismissal of the appeal. Revision No. 53(LX.of 1997 has been filed by the Commissioner of Trade Tax, U.P., Lucknow against the order of partly allowing the appeal.
(2.) AFTER Revision No. 700 of 1997 was heard by the court, it was pointed out by Sri B.K. Pandey, learned Standing Counsel, that the department has also filed a revision against the impugned order before the Lucknow Bench of this Court and both the revisions deserve to be decided by common judgment. The Commissioner of Trade Tax, U.P., Lucknow moved Civil Misc. Application No. 68823 of 1999 before the honourable Chief Justice with a prayer that the honourable Chief Justice be pleased to direct that Revision No. 700 of 1997 (Kajaria Ceramics Ltd. v. Trade Tax Tribunal) pending in the High Court of Judicature at Allahabad and Trade Tax Revision No. 53(L) of 1997 (Commissioner of Trade Tax v. Kajaria Ceramics Ltd.) pending before the Lucknow Bench of this Court may be heard and decided together. Honourable the Chief Justice passed the following order on September 29, 1999 on the said application : 'Heard learned counsel for the parties. The record pertaining to the Trade Tax Revision No. 53(L) of 1997 pending before Lucknow Bench be summoned to this Court immediately and the same be placed before honourable P.K. Jain, J., for hearing. Dated 29 -9 -99 Sd/ - N.K. Mitra.' That is how Trade Tax Revision No. 53(L) of 1997 came up for hearing before this Court. The dealer, Kajaria Ceramics Limited, carries on the business of manufacture and sale of ceramics wall and floor tiles having its factory situated in industrial area, Sikandarabad, district Bulandshahar, Uttar Pradesh. It set up a new unit and its date of first sale was August 16, 1988. The investment in the unit up to August 12, 1988 was Rs. 16,21,54,452. On December 26, 1985, the State of Uttar Pradesh issued Notification No. ST -II -7558/X -9(208) -1981 -U.P. Act 15/48 -Order -85, dated December 26, 1985, Under Section 4 -A of the then existing U.P. Sales Tax Act with a view to promote development of certain industries in the State of Uttar Pradesh granting exemption from or reduction in rate of tax to new units in certain districts and parts of the districts of Uttar Pradesh. The dealer, Kajaria Ceramics Limited was granted eligibility certificate for a period of 6 years with effect from August 16, 1988 by order dated May 5, 1990. The fixed capital investment of the unit of the dealer was Rs. 16,21,54,852 at the time of commencement of the sale, i.e., August 16, 1988. Thereafter came the notification dated July 27, 1991 being Notification No. ST -II -1093/XI -7(42) -68 -U.P. Act XV/48 -Order -91 published in the official gazette on July 27, 1991 which provided further exemption from payment of tax in case of units established after first day of April, 1990, and also to already existing units which have undertaken an expansion, diversification or modernisation on or after April 1, 1990 but not later than March 31, 1995. The case of the dealer is that in view of the said notification for further exemption it had undertaken a programme for expansion by making additional fixed capital investment to the tune of Rs. 54,51,03,544 in addition to the original fixed capital investment as on March 31, 1990 which was to the tune Rs. 16,96,27,581 with depreciation. The dealer applied for exemption under the 1991 scheme in the prescribed form for grant of exemption Under Section 4 -A of the U.P. Sales Tax Act, 1948 read with notification dated July 27, 1991. The Divisional Level Committee -respondent No. 2, granted eligibility certificate by its order dated March 7, 1996 to the tune of Rs. 24,15,05,019 and rejected the claim of the dealer in respect of remaining fixed capital investment vide order of the Divisional Level Committee/eligibility certificate dated March 7, 1996. The claim of the revisionist was that it was entitled to exemption on the total investment, i.e., the original fixed capital investment of Rs. 16,21,54,852 - -as on August 12, 1988 plus additional investment of Rs. 54,51,03,544 made on expansion between the period April 1, 1990 to March 28, 1994 the total amount being Rs. 76,17,87,532.
(3.) AGGRIEVED by the order passed by the Divisional Level Committee, the dealer filed appeal before the Trade Tax Tribunal, Lucknow. The Trade Tax Tribunal by its judgment and order dated April 10, 1997 partly allowed the appeal accepting the claim of the dealer in respect of additional fixed capital investment to the tune of Rs. 54,48,34,341.70 paise, it rejected the claim of the dealer with regard to Rs. 16,21,54,852 the original fixed capital investment as on August 12, 1988. By such rejection of claim, the dealer felt aggrieved and filed Trade Tax Revision No. 700 of 1997.;