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TMI Blog2007 (10) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... d Kumar Bhasin to file an application in a requisite form for the allotment of the land. In pursuance thereof, application in the proper form was furnished with the project profile showing the total investment about Rs. 73.50 lacs. On March 5, 1994 the UPSIDC allotted 4,000 sq. meters of land. On June 15, 1994 Shri Arvind Kumar Bhasin moved an application with the Regional Manager, Pradeshiya Industrial and Investment Corporation of U.P. Limited (hereinafter referred to as, "the PICUP") for the grant of term loan for the purpose of setting up an industrial unit. An application was also moved to the Regional Manager, the UPSIDC on April 20, 1994 for the term loan. Admittedly, applications for the allotment of land and the term loan were moved by Shri Arvind Kumar Bhasin in his individual capacity and not on behalf of the company. It is claimed that on May 19, 1997 Shri Arvind Kumar Bhasin wrote a letter to the Regional Manager, UPSIDC that he proposed to set up a unit of paint and synthetic resins at the allotted plot and requested to be informed about the necessary formalities. Shri Arvind Kumar Bhasin had also filed applications with the Director of Industries on July 9, 1997 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not given within twenty days. Letter dated January 10, 2002 sent under the certificate of posting had been denied to have been received. The applicant filed reply to the show cause notice. The Divisional Level Committee on the consideration of the reply rejected the application for the three reasons mentioned in the show cause notice dated December 4, 2002 referred hereinabove. Being aggrieved by the order of the Divisional Level Committee, the applicant filed appeal before the Tribunal. The Tribunal by the impugned order dismissed the appeal. The Tribunal has accepted the claim of the applicant about the intimation to the assessing authority, claimed to have been given on January 10, 2002. The Tribunal however, held that the unit in the name and style "M/s. Akross Synthetic Private Limited" came into existence from January 22, 2000 when the merger of proprietorship concern of Shri Arvind Kumar Bhasin with the company was permitted; the unit of the company applied for the term loan after May 26, 2002 much after March 31, 2000; unit was issued the registration certificate as SSI unit only for synthetic resins and the registration for the paint was granted on March 21, 2002 after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . KA. NI-2591/XI-9(116)/94-U.P. Act-15-48Order (28)-2000, dated August 24, 2000 and Notification No. KA. NI.-23867/XI-9(116)/94-U.P. Act-15-48-Order-(74)-2001, Lucknow, dated December 22, 2001 read as follows: "Notification No. KA. NI-2-2591/XI-9(116)/94-U.P. Act-15-48Order (28)-2000, dated August 24, 2000. Whereas the State Government is of the opinion that for promoting the development of certain industries in the State, it is necessary to grant exemption from, or reduction in rate of tax to new units. Now, therefore, in exercise of the powers under section 4A and section 25 of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948), the Governor is pleased to declare that in respect of any goods manufactured in a new unit (not being the units which have undertaken expansion, diversification, modernisation or backward integration) whose date of starting production falls on or after April 1, 2000 but not later than December 31, 2001, no tax shall be payable, or as the case may be, the tax shall be payable at the reduced rate by the manufacturer thereof on the turnover of sales of such goods from the date of first sale or the date following the expiration of six months fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se manufactured earlier by such units falls on or before March 31, 2000, no tax shall be payable, or as the case may be, the tax shall be payable at the reduced rate by the manufacturer thereof on the turnover of sales of goods, which are of a nature different from those, manufactured by the unit earlier: Provided that the unit intending to claim tax relief under this notification shall intimate in writing accordingly to the assessing authority within 20 days from the date of the notification. Conditions (a) the unit is registered/licensed under Industry Department or unit has obtained letter of intent or letter of will from Government of India; (b) the unit has obtained land from any source; (c) the unit has applied for a term loan from any regular Financial Institution." The production in the unit was commenced on October 30, 2001 and the first sale was made on November 16, 2001 and, therefore, the relevant notifications are Notification No. KA. NI-2-2591, dated August 24, 2000 and the Notification No. KA-NI-2-3867, dated December 22, 2001. I find substance in the argument of the learned counsel for the applicant that since the production in the unit had commenced o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to such factory or workshop and includes an industrial unit manufacturing the same goods at any other place in the State or an industrial unit manufacturing any other goods on, or adjacent to the site of an existing factory or workshop but does not include . . . The above definition provides that only those units which fulfil the con\ditions laid down in the notifications issued under the Act or Rules are said to be "new units" and eligible for exemption under section 4A of the Act. Thus, fulfilment of conditions mentioned in the notifications is mandatory and to be strictly complied with. In the case of Novopan India Ltd., Hyderabad v. Collector of Central Excise and Customs, Hyderabad reported in [1994] Supp. 3 SCC 606, apex court held as follows: "16. We are, however, of the opinion that, on principle, the decision of this court in Mangalore Chemicals [1991] 83 STC 234 (SC); [1992] Supp 1 SCC 21 and in Union of India v. Wood Papers Ltd. [1991] 83 STC 251 (SC); [1990] SCC (Tax) 422 referred to therein- represents the correct view of law. The principle that in case of ambiguity, a taxing statute should be construed in favour of the assessee- assuming that the said principle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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