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2013 (11) TMI 770 - HC - VAT and Sales TaxTax on the turnover upto the level of base production, in which stock transfer and consignment would not be included - Exemption with reference to the turnover of sales - Held that:- if the interpretation suggested by the petitioner is accepted in that event the unit will be entitled to exemption on branch transfer as well as on consignment sale without paying any trade tax either in the State of U.P., or Central, and would also at the same time be entitled to the exemption from, or reduction in trade tax on the production, over and above the base production, which was not the intention of the notification. The exemption on the stock transfer, or transfer of goods for consignment sale, is by the operation of law inasmuch as they do not fall within the purview of sale. This benefit is available even to the existing Units. Under Section 4-A of the Act and the notifications issued thereunder the benefit of exemption to the existing units, which have undergone expansion, diversification or modernisation is contemplated on the quantity of the goods in excess of the base production. The quantity of base production is determined only once on the consideration of the capacity of the production and maximum production of any one year of preceding five consecutive years. Such determined quantity of base production is the basis for the exemption for the period, for which the unit is entitled for exemption. The unit which has undergone expansion is thus 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 - Decided partly in favour of assessee.
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