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TMI Blog2014 (3) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... er the High Court has allowed the revision petition filed by the respondent herein. 3. The facts of the case are: the respondent-assessee before us is a public limited company which had established a new unit for manufacturing and sale of C.R. Strips. The assessee had applied for grant of eligibility certificate under Section 4-A of the Uttar Pradesh Trade Tax Act, 1948 (for short "the Act"). The assessee was issued the said certificate on the original fixed capital investment of Rs.542.28/- lacs for a period of six years with effect from 07.03.1990. Later, the assessee had sought for exemption under diversification, modernization/expansion programme on total fixed capital investment including additional fixed capital investment to the ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as concluded that while investment made pertaining to the temple and cost of Rs.25,000/- incurred on account of study report are not allowable for the purposes of calculation of additional fixed capital income; the expenditure incurred by the assessee for installation of transformer/CVT is allowable for the purposes of Section 4-A of the Act and constitutes part of additional fixed capital income and the amount of Rs.7,56,30,000/- which is payment made to financial institution as interest on loan taken by the assessee for construction of the unit would form an essential part of additional fixed capital income and hence is allowable. 6. Aggrieved by the aforesaid judgment and order of the High Court, the Revenue is before us in this appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment and order to that effect. 11. Per contra, Shri Dhruv Agrawal, learned senior counsel, appearing for the respondent-assessee would submit that this Court, while rendering the judgment in Kajaria Ceramics Ltd. (supra), had not noticed the proviso appended to Section 4-A of the Act and therefore, the said decision requires re-consideration by a larger Bench. Insofar as the second question of law is concerned, the learned senior counsel would bring to our notice clause (b) of the explanation to explanation (4) of Section 4-A of the Act and submit that the machinery purchased for establishment or running of the factory would certainly fall within the meaning of the expression "fixed capital investment" and therefore, the High Court has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was affirmed by the High Court, in our opinion, wrongly. 62. We have already noted in connection with Issue I that Explanation 4 to section 4A has defined fixed capital investment saying that it "means "investment in land and building and such plant, machinery, equipment apparatus, components, moulds, dyes, jigs and fixtures as have not been used or acquired for use in any other factory or workshop in India". 63. The language of the definition of the phrase in Explanation (4) to Section 4A is sufficiently clear and unambiguous. This coupled with the use of the word "means" in the Explanation shows that the definition is exhaustive. As has been observed in Feroze N. Dotiwala v. P. M. Wadhwani (2003) 1 SCC 433, 442 (SCC paras 13-14: "Gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by this Court in Kajaria Ceramics Ltd.(supra) and therefore, the first question of law requires to be answered in favour of the revenue and against the assessee. Accordingly, that portion of the order wherein the High Court had granted relief to the assessee requires to be set aside. 14. Insofar as the second issue is concerned, we have to notice the proviso to explanation (4) of Section 4-A of the Act. Explanation (4) speaks of "fixed capital investment" to mean "investment in land and building and such plant, machinery, equipment apparatus, components, moulds, dyes, jigs and fixtures as have not been used or acquired for use in any other factory or workshop in India". The said proviso need not be noticed by us for the purpose of dispos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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