STATE OF U P Vs. DEEPAK FERTILIZERS AND PETROCHEMICAL CORPORATION LTD

JUDGEMENT

(1.) Challenge in this appeal is to the judgment passed by the Division Bench of the High Court of Judicature at Allahabad.

(2.) Deepak Fertilizers and Petrochemical Corporation Ltd. (respondent herein) is a Company registered under the Indian Companies Act, 1956 which is engaged in the business of manufacture and sale of phosphatic fertilizers and allied chemicals the composition of which is 23:23:0 i.e. (Nitrogen, Prosperous and Potassium) in the State of U.P. and is registered under the Uttar Pradesh Trade Tax Act, 1948 (hereinafter called the 'Act') and the Central Sales Tax Act, 1956. The State of UP (the appellants herein) issued notification dated 2nd November, 1994, which provided for exemption from payment of tax on the sale of potassium phosphatic fertilizers for a specified period. This Notification reads as under:

(3.) A reading of this notification indicates that no tax would be payable for the period from 1st November 1994 to 31st March 1995 under the Act on the sale of Potassium Phosphatic Fertilizers.