Rajes Kumar, J. - (1.) These two revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal dated 23.07.1996 relating to the assessment years 1992-93 both under the U.P. Trade Tax Act and Central Sales Tax Act.
(2.) Brief facts giving rise to the present revisions are that the applicant is a Private Limited Company incorporated under the Indian Companies Act, 1956 having its registered office at B-67, South Extension, Part-II, New Delhi and the factory at plot No. 34-A/2, Site No. 4, Sahibabad in the district Gluziabad. Applicant was engaged in the business of manufacture of bulk drugs. Applicant was granted eligibility certificate under Section 4-A of the Act under notification No. ST-II-1093/XI-7(42)-86-U.P. Act-XV/48-Order-91, dated 27.07.1991 for the expansion undertaken by the applicant to manufacture paracetamole, which is bulk drug. The exemption was granted to the extent of 125% of the fixed capital investment, invested by the applicant in the expansion on the turn over of the goods manufactured in excess of the base production in an assessment year. The base production was fixed at 172.8 MT, thus, the applicant was entitled for the benefit of exemption under Section 4-A of the Act in an assessment year on the production exceeding the base production 172.8 MT. During the assessment year 1992-93 total sales made by the applicant from 01.04.1992 to 31.03.1993 was 382 125 MT both within the State of the U.P. as well as outside the State of U.P. including the central sales. Thus, according to the applicant, it was entitled for the benefit of exemption under Section 4-A of the Act on the turn over of the production of 209.325. MT. Applicant claimed that during the assessment year in dispute, applicant filed the return disclosing the total sales made by it and had claimed exemption from payment of tax both under the U.P. Trade Tax Act and Central Sales Tax Act only to the extent of sales made by it to the extent of 140.75 MT during the whole year. Assistant Commissioner, Trade Tax, Ghaziabad vide his assessment order dated 01.03.1995 accepted the books of account and the disclosed turn over but had restricted the claim of exemption to the extent of 70.325 MT instead of 140.75 MT. Aggrieved by the order of the assessing authority, applicant filed appeals before Deputy Commissioner (Appeals). Deputy Commissioner (Appeals) vide order dated 31.7.1995 dismissed both the appeals. Deputy Commissioner (Appeals) held that the exemption can not claimed from payment of tax upto the period till the base production turn over has not been achieved. He was of the view that exemption was available only after the date on which base production is achieved, i.e. if the base production is achieved in third month then the applicant would be entitled for exemption from the fourth month. Aggrieved by the orders of the Deputy Commissioner (Appeals), applicant filed appeals before the Tribunal, which were partly allowed vide order dated 23.7.1996. Tribunal has held that base production has been achieved on 23 09.1992 and. therefore, whatever the sale was made by the applicant upto 23.09.1992 shall not be entitled for exemption and the applicant was entitled for exemption only after 23.09.1992 on the production in excess of the base production.
(3.) Heard learned counsel for the parties.;