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2014 (3) TMI 738 - SC - VAT and Sales TaxFixed capital investment - assessee had sought for exemption under diversification, modernization/expansion programme - UPTT, 1948 - Whether preoperative expenses in the form of payment of interest towards the advance loan taken from the financial institution would form part of additional fixed capital investment (FCI) - Held that:- Judgment in Commissioner of Trade Tax, U.P. & Anr. vs. M/s.Kajaria Ceramics Limited [2005 (7) TMI 351 - SUPREME COURT OF INDIA] followed – The legislature has consciously used the expression "means" immediately after the expression "fixed capital investment" to imply and ensure that the definition is exhaustive. Further, the Court has observed that the language employed by the legislature while defining the meaning of the expression "fixed capital investment" is unambiguous and therefore, no inclusion can be made in the definition by means of interpretation - That portion of the order wherein the High Court had granted relief to the assessee requires to be set aside – Decided in favour of revenue. Whether the transformer/C.V.T. installed for regulating voltage for running of the machinery in the factory premises would fall within the meaning of the expression "fixed capital investment" - Held that:- Explanation 4(b) (i) of Section 4-A speaks of investment made on machinery/apparatus, components etc. for establishment or running of the factory would fall within the meaning of the expression "fixed capital investment" - The appellant has purchased the aforesaid machinery used by the respondent for the purpose of controlling the fluctuation in the supply of electrical energy to the machinery/equipment installed in the factory premises – Thus, the investment that is made by the assessee would certainly fall within explanation (4)(b)(i) of Section 4-A - Appeal allowed in part and set aside the judgment and order of High Court insofar as the relief that is granted to the respondent in payment of interest - Judgment and order passed by the High Court insofar as the purchase of the transformer for erection in the business premises for running of the machinery confirmed – Decided partly in favour of revenue.
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