Ashwani Kumar Mishra, J. - (1.) This revision is by the assessee challenging an order passed by the Commercial Tax Tribunal, U.P. Lucknow in Appeal No.37 of 2008, dated 15th September, 2009, whereby benefit of exemption from payment of tax under Section 4-A of the U.P. Trade Tax Act has been declined. Tribunal has held that revisionist's claim is not covered under the exemption notification, and consequently its benefit would not enure to it.
(2.) Facts, giving rise to the controversy, lie in a narrow compass. Revisionist established a unit for manufacturing Oxygen Gas at Agra. For establishment of its unit, it took land on lease for a period of 20 years on 20th December, 1999. The lease was subsequently registered on 5th October, 2000 with effect from 20th December, 1999. It also applied for registration with the trade tax department on 8.8.2001. The unit was made operational and actual production commenced on 28th June, 2001.
(3.) Exemption from payment of trade tax was sought by the revisionist under Section 4-A of the U.P. Trade Tax Act. Reliance was placed upon a notification issued on 15th January, 2000. A subsequent notification dated 24.8.2000 was also relied upon for the purpose. The first notification dated 15.1.2000 is reproduced:- "KA.NI.-2-111/XI-9(116)/94-U.P.Act-15-48-Order-2000 Dated: Lucknow : 15 January, 2000 In exercise of the powers under section 4-A of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No.15 of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No.1 of 1904), and in partial modification of all previous notifications issued in this behalf, under the said section 4-A, the Governor is pleased to direct that, no exemption from, or reduction in the rate of tax on sale of goods shall be admissible to units starting production on or after January 17, 2000 except the units which fulfill the following conditions on the said date. (a)the unit is registered under the said Act of 1948; (b)the unit has applied for a Term Loan from any Financial Corporation or Company owned or controlled by the Central or the State Government or any Bank; (c)the unit would start production upto March 31, 2000; and (d)the unit has been allotted land for the factory." The subsequent notification of 24th August, 2000 is also extracted hereinafter:- "KA.NI.-2-2591/XI-9(116)/94-U.P. Act-15-48-Order(28)-2000 Dated: Lucknow : August 24, 2000 WHEREAS the State Government is of the opinion that for promoting the development of certain industries in the State, it is necessary to grant exemption from, or reduction in rate of tax to new units. NOW, THEREFORE, in exercise of the powers under section 4-A and section 25 of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No.XV of 1948), the Governor is pleased to declare that in respect of any goods manufactured in a new unit (not being the units which have undertaken expansion, diversification, modernization or backward integration) whose date of staring production falls on or after April 1, 2000 but not later than December, 31, 2001 not tax shall be payable, or as the case may be, the tax shall be payable at the reduced rate by the manufacturer thereof on the turnover of sales of such goods from the date of first sale or the date following the expiration of six month from the date of starting of production whichever is earlier, subject to the conditions and restrictions referred to in section 4-A of the said Act and in notifications issued from time to time thereunder and subject to the modification that the unit should also fulfill the following conditions on January 17, 2000:- (a)the unit is registered under the said Act; (b)the unit has applied for a term loan from any Financial Corporation or Company owned or controlled by the Central or State Government or any bank; (c)the unit has been allotted land for the factory. ";