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TMI Blog2006 (8) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal in respect of the goods manufactured during the period of exemption and sold thereafter is contrary to the object of the provisions of the Act and the notification issued thereunder? 4.. Whether the applicant was bona fidely believing that the applicant is entitled for exemption in respect of all goods sold by the applicant which were manufactured in the new unit during the period of seven years specified in the eligibility certificate having not realised any tax on the disputed turnover of tax from its customers there is no liability for payment of tax treating the assessed tax as admitted tax? 5.. Whether in any view of the matter the order of the Tribunal is liable to be set aside? Brief facts of the case are that the applicant is a public limited company incorporated under the Indian Companies Act, 1956 and is registered both under the U.P. Trade Tax Act, 1948 and the Central Sales Tax Act, 1956. The applicant had established a new unit at Sathariya, district Jaunpur for manufacturing pressure cooker. The production was started on February 28, 1990. The applicant claimed exemption under section 4A of the Act being a new unit, on the sale of its manufactured product. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption under the notification, in case, the goods are manufactured during the specified period. He submitted that in any view of the matter in case the claim of exemption is held to be not admissible, the amount of tax assessed cannot be treated as admitted tax and the interest under section 8(1) of the Act cannot be demanded. He submitted that the applicant was all along bona fidely disputing the levy of tax and in the present case, the interpretation of the notification is involved and in case the notification is interpreted against the dealer and the levy of tax is upheld, the amount of tax cannot be said to be admitted tax. Learned Standing Counsel submitted that section 4A of the Act provides that the State Government, by notification, may declare that the turnover of sales in respect of such goods by the manufacturer thereof shall, during such period not exceeding 15 years from such date or on or after the date of starting production as may be specified by the State Government in such notification for the exemption from tax on the sale of the goods. He submitted that the relevant notification is Notification No. ST-7558/X-9(208)1981-U.P. Act XV/48-Order-85, dated December 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istricts in particular, it may on application or otherwise, in any particular case or generally, by notification, declare that the turnover of sales in respect of such goods by the manufacturer thereof shall, during such period not exceeding twelve years from such date on or after the date of starting production as may be specified by the State Government in such notification, which may be the date of the notification or a date prior or subsequent to the date of such notification, and where no date is so specified from the date of first sale by such manufacturer if such sale takes place within six months from the date of starting production and in any other case from the date following the expiration of six months from the date of starting production and subject to such conditions as may be specified, be exempt from trade tax on sale of goods whether wholly or partly or be liable to tax at such reduced rate as it may fix." Notification No. ST-II-7558/X-9(208)-1981-U.P. Act XV/48-Order-85, dated December 26, 1985: "Whereas, the State Government is of the opinion that it is necessary so to do for promoting the development of industry in the State generally and in certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he exemption was available only for the specified period for which the exemption was granted. The notification does not provide exemption on the turnover of sale of goods made after the expiry of specified period, though that any goods manufactured during the specified period for which the exemption was granted. The notification clearly provides the exemption on the turnover of sales for the specified period. The exemption under the notification was on the turnover of sale and not on the production. In the present case, the specified period was from March 20, 1990 to March 19, 1997. Therefore, the claim of exemption on the turnover made after the date of expiry of March 19, 1997 is misplaced and contrary to the provision of the notification. The case of Commissioner of Sales Tax v. Industrial Coal Enterprises [1999] 114 STC 365 (SC); [1999] 1 UPTC 250 (SC) and latest decision of the apex court in the case of State of Jharkhand v. Tata Cummins Ltd. [2006] 145 STC 340; [2006] 4 SCC 57 relied upon by the learned counsel for the applicant are not relevant to the present case. The observation made by the apex court about the object and construction of section 4A of the Act is not releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Maharashtra reported in [2001] 4 SCC 534, the apex court held as follows: "Further we wish to clarify that it is a cardinal principle of interpretation of statute that the words of a statute must be understood in their natural, ordinary or popular sense and construed according to their grammatical meaning, unless such construction leads to some absurdity or unless there is something in the context or in the object of the statute to suggest to the contrary. The golden rule is that the words of a statute must prima facie be given their ordinary meaning. It is yet another rule of construction that when the words of the statute are clear, plain and unambiguous, then the courts are bound to give effect to that meaning, irrespective of the consequences. It is said that the words themselves best declare the intention of the lawgiver. The courts have adhered to the principle that efforts should be made to give meaning to each and every word used by the Legislature and it is not a sound principle of construction to brush aside words in a statute as being inapposite surpluses, if they can have a proper application in circumstances conceivable within the contemplation of the statut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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