JANTA MACHINE TOOLS Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) The petitioner is a concern engaged in the business of manufacture of electric motors, pump sets and their parts. It applied for exemption from sales tax in respect of the goods manufactured by it in terms of a notification issued by the State Government on 30-9-1982 under S. 4A of the Uttar Pradesh Sales Tax Act, 1948 (hereinafter called the 'Act'). This application was rejected by a Division Level Committee by an order dated 9-2-1987 and a further review application was also dismissed on 27-10-1987. Thereupon the appellant filed a writ petition which was also rejected by the High Court by a short order dated 7-12-1987. Aggrieved by this denial of the exemption, which it claims it is entitled to the appellant has preferred this appeal.

(2.) Section 4A of the Act reads as under:

(3.) In pursuance of the above section, the State Government published a scheme for the grant of exemption from sales tax to certain industrial units in the State. The scheme, according to its introduction, had been introduced "in order to encourage capital investment and establishment of new industrial units in the State". It granted exemption to the industrial units established in certain areas of the State during the period from 1-10-1982 to 31-3-1985 and producing certain categories of goods. It is not necessary to refer in detail to the provisions of the scheme or other conditions of exemption. It is sufficient to say that this exemption was conferred only on units established on or after 1-10-1982 but before 31-3-1985. The scheme also makes it clear that though it referred to units "established" this really is a reference to the date of commencement of production by the industrial unit. This is also in accord with the terms of the statute and in particular sub-sec. (2) of 4A. The appellant's claim to exemption has been rejected on a very short ground, namely, that it had not commenced production after 1-10-1982.