ASIAN PETRO CHEMICALS Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) Present revision under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the "Act") is directed against the order of the Full Bench of the Tribunal dated 1st December, 2006. The brief facts of the case giving rise to the present revision are that the applicant is a proprietorship concern and established a factory at village Raibha, Bodla Bichpuri Achhnera Road, Tehsil Kerawal, District Agra for the manufacture of thinner, rubber solution and varnish. The applicant was registered under the U.P. Trade Tax Act and Central Sales Tax Act. It was claimed that in the unit, first purchase of the raw material was made on 15th January, 2001. The first production was made on 26.09.2001 and first sale was made on 11.10.2001. The applicant claimed that it was new unit as contemplated under Section 4-A of the Act and for the exemption on the turnover of the manufactured product an application under Section 4-A of the Act was moved on 30th October, 2001. It was claimed that the land and building were taken on lease initially vide agreements dated 6.7.1999 and 21.07.1999 which were not the registered lease deed, but subsequently, a registered lease deed was executed on 29.09.2001. The total investment claimed to have been made on the land, building, machinery etc was at Rs. 24,45,176.45 paise which includes investment towards land and building at Rs. 8,60,262/- and the balance amount relates to the machinery, pumping set, tanks, pipe fitting, mixture etc. It was claimed that in the unit six tanks have been installed. It was claimed by the applicant that it had carried on test production on 5.4.2000 by mixing material manually by hand and whatever the goods have been prepared in test production, the same was sold for Rs. 4,800/- on 5.4.2000 on the same day. Thereafter the machinery were installed and the electricity connection was also installed on 10.9.2001. The General Manager, District Industries Centre, Agra initially issued provisional Registration Certificates as S.S.I. Unit on 15.07.1999 and later on when the production was started in the Unit and a permanent Registration Certificate was issued on U0.2001 showing the date of production as 27.09.2001.

(2.) The exemption was claimed under Notification dated 24.08.2000 issued under Section 4-A of the Act. The exemption application was rejected ex-parte by the Divisional Level Committee. Against the order of the Divisional Level Committee, applicant filed appeal before the Tribunal which was allowed vide order dated 16.01.2004 and the matter was remanded back to the Divisional Level Committee for decision afresh. Tribunal has remanded back the matter with the direction to the Divisional Level Committee to issue show cause notice showing the grounds on which it preferred to reject the application. In pursuance thereof, appears that show cause notice was issued by the Divisional Level Committee or 27.02.2004 which has been replied by the applicant on 31.03.2004. The Divisional Level Committee has again rejected the application vide order dated 25.01.2005. Against the said order, the applicant preferred an appeal before the Tribunal which was decided vide order dated 5.7.2005. Tribunal by the aforesaid order again remanded back the matter to the Divisional Level Committee. Being aggrieved by the said order, applicant filed Trade Tax Revision No. 1152 of 2005 before this Court. This Court vide order dated 14.09.2005 allowed the revision, set aside the order of the Tribunal and remanded back the matter to the Tribunal to decide the appeal afresh on merit. Tribunal by the impugned order dismissed the appeal Tribunal has held as follows:

(3.) Heard Sri R.R. Agrawal, learned Counsel for the applicant and Sri B.K. pandey, learned Standing Counsel.