Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 2011 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 592 - SC - VAT and Sales TaxWhether or not bottles and crates used by the respondent could be said to be essential apparatus or equipments or components for the establishment and running of the factory of the respondent - The assessee-respondent applied for the grant of eligibility certificate under Section 4A of the U.P. Trade Tax Act read with Notification No. 640 dated 21-2-1997 - he question of law that was framed by the High Court was answered in favour of the assessee holding that such bottles and crates are to be treated as fixed capital investment. It was also held that the period of exemption was for 15 years - It was also submitted that the use of word “Apparatus” in the definition of “Fixed Capital Investment” is restricted to such apparatus which are actually used in the manufacture of finished product and that it cannot be extended to such apparatus which are used for storing of finished products - there is also no such notification issued by the State Government giving a restricted meaning to the expression “fixed capital investment” which as per provision enacted also includes all such investment made for equipment, apparatus, components and machinery which are necessary for running of the factory or workshop - Held that: so far bottles are concerned, they are essential part of components and equipments necessary for the running of the factory and therefore such value of the investment would form part of the fixed capital investment and would be entitled to exemption as provided for - Appeal is disposed of
|