9911796707
TMI Blog1984 (2) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the manufacture of polythene bags and films in 1967 as a proprietary concern. It was converted into a registered partnership firm in 1975 for carrying on business of manufacturing and selling plastic goods, namely, polythene bags, films, plastic pipe, plastic cane, monofilaments, extruded sections, etc., and was a licensed registered dealer under the provisions of the Rajasthan Sales Tax Act, 1954. It appears, after the proprietorship concern being converted into a partnership firm, fresh licences were granted to the new partnership firm and new registration No. R.S.T. 512/67 and C.S.T. JUC/4467 were allotted to the new partnership firm. In order to boost industrial production in the State, it is alleged, the State Government has given e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter it was converted into partnership firm in 1975 and the partnership firm was using the old machineries for the purpose and no new machinery has started production. In that view of the matter, according to Mr. Additional Advocate-General, the petitioner was not entitled to the exemption to be granted under section 5CC of the Rajasthan Sales Tax Act, 1954. Section 5CC of the Rajasthan Sales Tax Act, 1954, and the notification under section 5CC are in the following terms: "5CC. Remission of tax on raw material for specified Period-(1) Notwithstanding anything contained in section 5 or 5A, but subject to such restrictions and conditions as may be prescribed, no tax shall be payable by a registered dealer who commissions any notified indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 5, but not exceeding 1¼ times the amount of tax at such full rate, as the assessing authority may determine, having regard to the circumstances in which such use was made. Explanation.-For the purpose of this section 'notified industry' means an industry notified by the State Government in this behalf." "Notification No. F. 5(15)FD/CT/70-25, dated 1st July, 1970. In pursuance of the explanation to section 5CC of the Rajasthan Sales Tax Act, 1954 (Rajasthan Act 29 of 1954), the State Government hereby notifies that all industries with new units shall be treated to be notified industries for the purpose of the said section. Note: For the purpose of this notification 'new unit' means factory or workshop using machinery or substan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... already used or acquired for use in any other factory or workshop in Rajasthan, but does not include any factory or workshop established on the site of an existing factory or workshop manufacturing the same goods or any addition to or extension of an existing factory or workshop for manufacturing the same goods. From the said note to the notification it is clear that even if a factory or workshop established on the site is extended by any addition but manufactures the same goods, it will not come within the meaning of the word "new unit". Therefore, in my opinion, Mr. Additional AdvocateGeneral is correct when he says that new unit means new unit to be established for the manufacture of the goods on the expansion of a factory or existing fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption. In the present case it is clear, the petitioner-industry as a firm has got a registration certificate a new and though one of the partners is major shareholder of the firm, still legally speaking the partnership and proprietary firm are two different legal entities. In these circumstances, in my opinion, the petitioner-partnership firm cannot be entitled as of right to exemption under section 5CC of the Rajasthan Sales Tax Act, 1954, for the purchase of raw materials for manufacture of the goods for sale within the State."
In the circumstances, therefore, in my opinion, there is no merit in this rule. The rule must, therefore, stand discharged.
The rule is, therefore, discharged. There will be no order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
|
