9911796707
TMI Blog2013 (10) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... investment. In respect of the unit, situated at Lucknow, exemption was for a period of eight years or to the extent of 100% if the fixed capital investment exceeds Rs.50 crores. In case of fixed capital investment being less than Rs.50/- crores, the exemption was granted 100 % in the first two years, 75% in 3rd and 4th year, 50% in 5th and 6th year and 25% in 7th and 8th years. This exemption of 100%, 75%, 50% etc. was based upon the fixed capital investment in the unit being investment less than Rs.50/- crores and in the event of more than 50% crores 100% exemption in all the eight years. On 13.10.2003 exemption/eligibility certificate was granted to the applicant for a period of eight years i.e. w.e.f. 31.12.2001 till 30.12.2009. U.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trade Tax Act. The section 42(3)(a) provides as under:- "42(3) (a): the industrial unit availing or granted benefit of exemption from or reduction in the rate of tax under the erstwhile Act or under the Central Sales Tax Act, 1956, on the turnover of sales of manufactured goods or turnover of purchase of any raw material processing material consumable stores, fuel other than petrol and diesel, lubricant required for use in manufacture of goods or in the packing of goods manufactured by such industrial unit or both, and (i) whose facility of exemption or reduction in the rate of tax is based on the fixed capital investment as provided under the erstwhile Act or Notification issued thereunder, or" Section 42(3) (a) (i) contemplates indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amending Act No.11 of 2009 dated 28.2.2009 retrospectively w.e.f. 1.1.2008 and benefit of exemption was converted into benefit of refund by net tax payable by the unit. The Tribunal has committed an error of law in rejecting the application for grant of Certificate of Entitlement under Section 42(3)(a) as not maintainable even though the exemption is based on the fixed capital investment. In the case of electronic industries monetary limit is not in view of the Notification dated 16.11.1995 there but the exemption is based on fixed capital investment, as mentioned above. In view of above, order dated 7.10.2009 passed by Commercial Tax Tribunal, Lucknow served on 12.10.2009 in Second Appeal No.14 of 2009 is set aside. The matter is remand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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