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2014 (1) TMI 777 - ALLAHABAD HIGH COURTExemption under section 4-A of UPTT Act, 1948 - Disallowance of premium on land - Disallowance of UPSIDC as interest - Disallowance of establishment of Fly Ash Extraction System at N.T.P.C. - Held that:- it is evident that without the Railway, the Factory cannot function and earned in profit as the Transportation cost by road will increase the price of the product tremendously. The assessee has already entered into an agreement with the Railway Department and the work was in progress. The assessee has taken the land for 90 years lease from UPSIDC. So, no ownership is lying with the assessee but the fact remains that the premium was paid for the entire land. The Railway Siding / line is in the interest of the business of the assessee. Similarly three Silos were used for storing the raw materials and at later stage, the same can be used for finished goods. So, it is also in the interest of the assessee's factories - there is a difference between the development and approval of the land drawing. The charges paid for approval of the land drawing cannot be equated towards the land development charges. Assessee is pertaining to the dis-allowance of ₹ 26,25,100/- paid to UPSIDC as interest on the deferred payment of installment of the premium. The Tribunal has rightly allowed the same as it is a certain liability - grievance of the assessee towards the dis-allowance of ₹ 2,86,91,129/-, which was claimed for establishment of Fly Ash Extraction System at N.T.P.C. Unchahar-Rae Bareli. The Fly Ash is the basic component of the cement. The assessee has claimed this amount towards FCI. The Ash received free of cost in the wet form. By this system, the assessee made the Ash dry and transported to the factory but the fact remains that the site/land was provided by the NTPC free of cost. Towards it, an agreement between the NTPC and the assessee was examined by the Tribunal. For running the Plant, the electricity was available on the payment from the NTPC. Thus, the Fly Ash was available to the assessee without any cost. To run the Plant, electricity was available on payment basis - Decided against assessee.
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