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2018 (1) TMI 1253 - HC - VAT and Sales TaxBenefit of exemption from payment of tax - Section 4-A of the U.P. Trade Tax Act - The only reason assigned to non-suit the revisionist is that the condition in the notification that unit is allotted land for the factory is not fulfilled - whether the conditions imposed in the notification is directory or mandatory? - Held that: - The provision makes it clear that where in the opinion of the State Government, it is necessary for increasing the production of any goods or for promoting the development of any industry in the State, or any district or part of district in particular, it may exempt the turnover of sales in respect of such goods from payment of tax in the manner contemplated. Conditions for grant of such exemption is to be specified in the notification itself. It has to be examined as to whether condition of allotment of land for the unit is a mandatory condition or is it directory. The object underlying Section 4-A of the Act and the exemption notification is to promote development of any industry in the State generally or in any district or part of it. The idea is to encourage setting up of new units for the purpose in the specified areas. So far as establishment of new unit is concerned, it would have to be shown that the unit has land available with it for the purpose. Possessing of land is thus a mandatory or substantive condition in the exemption notification. The manner and mode of such acquisition has been specified from time to time. A notification dated 31st March, 1995 has been brought on record, issued for similar purposes, which was to apply in respect of production starting between the period 1.4.1995 and 31.3.2000. It was the notification dated 31st March, 1995, which was followed by the notification in question dated 15.1.2000. The condition of allotment of land specified in the notification dated 15.1.2000 has been substituted vide subsequent notification of 22.12.2001, as per which land could be obtained from any source. Possessing of land has a direct nexus with establishment of new unit, inasmuch as the new unit itself cannot come up in its absence. It has a direct nexus with the object sought to be achieved i.e. increase in production or development of industry in State. However, its mode of acquisition neither has any such nexus nor can it be attached the same importance. Section 4-A otherwise does not limit the grant of exemption to a unit depending upon the mode of acquiring land for it. Possessing of land for establishment of new unit although constitutes the mandatory or substantive part of exemption notification but mode of acquisition of land is wholly directory, and its non-compliance would not affect the essence or substance of the notification in question, granting exemption - revision allowed - decided in favor of revisionist/assessee.
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