Saumitra Dayal Singh, J. - (1.) Present revision has been filed by the assessee against the order of the Full Bench of the Commercial Tax Tribunal, Lucknow dated 22.10.2012 passed in Appeal No. 16 of 2008 [under Section 4-A of the U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act)]. By that order, the Tribunal has dismissed the appeal filed by the assessee and confirmed the order passed by the Divisional Level Committee (In short 'DLC') depriving the assessee of an eligibility certificate viz-a-viz investment of Rs. 8,13,30,080/- made in diversification of it's new unit to manufacture monitors.
(2.) The assessee, an Indian company is a subsidiary of L.G. Electronics, Korea (hereinafter referred to as the 'parent company'). As early as on 29.01.1997, the parent company was granted approval by the Government of India (Ministry of Industry), to set up the assessee company - a 100% owned subsidiary company in India to manufacture and market various electrical and electronic appliances including washing machines, refrigerators, air conditioners, colour televisions, audio and video equipments. Then, on 04.11.1997, the Government of India amended its approval letter dated 29.01.1997 and granted further approval to the parent company to manufacture and market (by the assessee company) various electrical and electronic appliances mentioned in the letter dated 29.01.1997 and also Microwaves ovens and PC monitors. In light of such approval letters, it has been contended, the assessee company was incorporated and it has engaged in the activity of manufacture and marketing of various electrical appliances and electronic goods.
(3.) In the context of the dispute that had arisen, it is seen that the State Government had, vide notification nos. 780 and 781, both dated 31.03.1995, provided for schemes to grant exemption to 'new units' established inside the State and to units engaged in expansion, diversification and modernisation, during the period 01.04.1995 and 31.03.2000. It is a common case between the parties that the aforesaid notifications came to be amended on 16.11.1995, by notification nos. 2760 and 2761, whereby instead of providing for exemption by way of monetary limit, with respect to other than electronic goods, exemption was provided only with reference to time from the date of start of production. Again, by notification nos. 640 and 641, both dated 21.02.1997, the scheme for exemption was supplemented. Thereby, the State Government notified further exemptions to 'new units' undertaking expansion, diversification, backward integration and modernisation between 01.12.1994 and 31.03.2000, subject to they are having invested Rs. 50 crores or more.;