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2010 (10) TMI 945 - ALLAHABAD HIGH COURT (LB)Exemption under the Expansion Scheme - Section 4A of UPTT - Whether stock transfers and consignment sales have to be included in calculating the base production - The assessing authority was of the view that the petitioner was liable to tax on the turnover of the quantity of the base production and was entitled for the exemption only on the quantity over and above the production in excess of the base production and the goods transferred by way of stock transfer and by consignment sale would not be included in the base production. With the aforesaid view the assessing authority calculated the quantity and the turnover of exemption. Held that:- under the notification no. 640 dated 21.2.1997 the unit undergone expansion is entitled for the exemption on the turnover of the "quantity" in excess of the "quantity of base production" plus stock of the base production of the previous years. The base production includes the quantity of the stock transfer/consignment transaction. The view taken by the Division Bench in the case of Ambika Steel Private Limited Vs. State of U.P. and others [2007 (9) TMI 541 - ALLAHABAD HIGH COURT] and in the case of M/s IFFCO Ltd. does not lay down the correct law and as such both the aforesaid decisions stand overruled.
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