1999 (2) TMI 530 - SUPREME COURT

Construction of the relevant provisions of the U.P. Sales Tax Act, 1948 and the Government notification issued thereunder granting exemption from sales tax of certain goods for specified period

Held that:- Appeal dismissed. The object of granting exemption from payment of sales tax has always been for encouraging capital investment and establishment of industrial units for the purpose of increasing production of goods and promoting the development of industry in the State. It is not the case of the appellant that there was any mala fides on the part of the respondent in obtaining exemption in the first instance as a unit with a capital investment below ₹ 3 lakhs and increasing the capital investment subsequently to an amount exceeding ₹ 3 lakhs with a view to defeat the provisions of any of the relevant statutes. The bona fides of the respondent have never been questioned by the appellant.