9911796707
TMI Blog2013 (11) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Principal Secretary, Government of U.P., amending the earlier decisions of the State Government vide circulars dated 3.2.1993 and 26.8.1998, to the effect that the Industrial Units, on the expansion, diversification and modernisation schemes under Section 4-A of the U.P. Trade Tax Act, on prescribed Form 46 under Rule 25 of the U.P. Trade Tax Rules, will be required to pay tax on the turnover upto the level of base production, in which stock transfer and consignment would not be included. By prayer no.(b) the petitioner has prayed for quashing the assessment order dated 1.3.2009 served on 30.6.2009 in so far as the stock transfer has been denied for calculation of base production for the assessment year 2006-07. By prayer no.(c) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd accordingly it referred the matter to a Larger Bench. 6. A bench of three Hon'ble Judges was constituted by the Hon'ble Chief Justice, which considered and decided the reference with following conclusions:- "CONCLUSION In view of the foregoing discussion, we are of the view that under the notification no. 640 dated 21.2.1997 the unit undergone expansion is entitled for the exemption on the turnover of the "quantity" in excess of the "quantity of base production" plus stock of the base production of the previous years. The base production includes the quantity of the stock transfer/consignment transaction. In view of above, we are of the considered opinion that the view taken by the Division Bench in the case of Ambika Steel Private L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. The exemption on the stock transfer, or transfer of goods for consignment sale, is by the operation of law inasmuch as they do not fall within the purview of sale. This benefit is available even to the existing Units. Under Section 4-A of the Act and the notifications issued thereunder the benefit of exemption to the existing units, which have undergone expansion, diversification or modernisation is contemplated on the quantity of the goods in excess of the base production. The quantity of base production is determined only once on the consideration of the capacity of the production and maximum production of any one year of preceding five consecutive years. Such determined quantity of base production is the basis for the exemption for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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