SWASTIK TUBES P LTD Vs. TRADE TAX TRIBUNAL

JUDGEMENT

(1.) In the present writ petition the impugned order dated June 19, 2002 passed by the Trade Tax Tribunal on stay application in appeal No. 50 of 2002 has been challenged.

(2.) Heard Sri Bharatji Agrawal, Senior Advocate, along with Sri Piyush Agrawal, learned counsel for the petitioner and Sri B.K. Pandey, learned Standing Counsel for the respondents. With the consent of the parties, the writ petition is being disposed of at this stage in the light of second proviso to Rule 2 of Chapter XXII of the Allahabad High Court Rules, 1952.

(3.) The petitioner, registered under the U.P. Trade Tax Act, 1948 (in short called as "the Act") and under the Central Sales Tax Act, 1956, as manufacturer of PVC pipes and fittings was granted exemption under Section 4-A of the Act and was issued eligibility certificate dated March 26, 1998 (annexure 1) from payment of tax for the period of ten years, w.e.f. September 25, 1995 to September 24, 2005 or to the extent of 200 per cent of the fixed capital investment whichever is earlier. In the eligibility certificate the date of starting production has been mentioned as July 31, 1995 and the date of first sale was mentioned as September 25, 1995 from which date the period of exemption of ten years was given. The petitioner undertook expansion of the existing unit by making additional fixed capital investment of Rs. 21,22,470 which was much more than 25 per cent of the original fixed capital investment of Rs. 54,45,000. The production capacity of the petitioner-unit was increased from 1,450 MT to 3,000 MT which was more than 100 per cent of the original installed production capacity. For coming within the field of eligibility of expansion the increase of 25 per cent of the original installed production capacity is required.