BELTEK INDIA LTD Vs. COMMISSIONER OF TRADE TAX

JUDGEMENT

(1.) The present revisions have been filed by the assessee against the common order of the Trade Tax Tribunal, Ghaziabad dated 14.01.2004 in Second Appeal Nos. 64 of 2003 and 65 of 2003, for A.Ys. 1999-2000 (UP and Central respectively). By that order, the Tribunal has confirmed the order passed by the First Appellate Authority that had, in turn, confirmed the assessment orders whereby the claim of exemption made by the assessee on strength of the Eligibility Certificate dated 05.02.1998, issued under section 4-A of the U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act), had been declined. Also, the finding of rejection of books of account and best judgment assessment have been affirmed. By order dated 15.11.2018, the present revision had been admitted on the following questions of law:-

(2.) Heard Sri Praveen Kumar, learned counsel for the applicant-assessee and Sri B.K. Pandey, learned counsel for the revenue.

(3.) During A.Y. 1999-2000, the assessee manufactured black & white and colour television sets. It set up a "new unit" within the meaning of that term under Section 4-A of the Act, at Ghaziabad. It applied to the Divisional Level Committee to grant exemption in terms of twin exemption notifications nos. 780 and 781 (both issued by the State Government on 31.3.1995) under Section 4-A of the Act, and section 8(5) of the Central Sales Tax Act 1956, respectively. Also admittedly, on 05.02.1998, the Divisional Level Committee, Noida granted the Eligibility Certificate to the assessee in relation to the aforesaid "new unit" set up by it, for a period of eight years from the date of its first sale, being 14.06.1996. According to Clause 10 of the said certificate, the assessee was granted full exemption from tax for the first two years. For the third and fourth years, it was granted exemption to the extent of 75% of the tax liability. For the fifth and the sixth years, it was granted exemption up to 50% of the tax liability and for the seventh and the eighth years, it was granted exemption up to the extent of 25% of the tax liability.