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TMI Blog2005 (1) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... e situated at village Bijaura, post office Bhawar Nath, Azamgarh where detergent soap and toilet soap were manufactured and another unit was situated at Munda Jafarpur, Azamgarh where detergent powder and laundry soap were manufactured. The dealer claimed exemption on the turnover of the manufactured goods being unit of Khadi Gramudyog under Notification No. ST-2-709/XI-9(53)/91-U.P. Act-15-48Order-97, dated February 27, 1997. There is no dispute that the dealer is an institution certified by All India Khadi and Village Industries Commission or U.P. Khadi and Village Industries Board. The assessing authority disallowed the claim of exemption on the entire turnover on the ground that the turnover exceeded Rs. 50 lakhs. The assessing authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notification does not contemplates exemption to the extent up to Rs. 50 lakhs to each individual item. Sri Bharat Ji Agrawal, learned counsel for the dealer submitted that the history of the notification granting exemption to the institution certified by All India Khadi and Village Industries Commission or U.P. Khadi and Village Industries Board are relevant. He submitted that in the Notification No. S.T.-2-7037/X-7(23)-83-U.P. Act XV/48-Order-85 dated January 31, 1985 no exemption limit was fixed. In the Notification No. 3409 dated October 1, 1994, items eligible for exemption have been classified into five categories and for each category, different exemption limit in an assessment year in respect of the product of each of the village ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , subject to the conditions, if any, specified in column 3 thereof: SCHEDULE Serial No. Description of goods/persons/class of persons Conditions, if any 1 2 3 1 . . . . . . . . 2 3 Institutions in U.P. certified by the All India Khadi and Village Industries Commission or U.P. Khadi and Village Industries Board -- (a) on the sale of products of village industries specified below; and (b) on the purchase of any goods connected with the manufacture of products of village industries or purchase of products of village industries specified below: -- On condition that the dealer selling such goods to the said institution furnishes a certificate from the said institution, duly countersigned by the District Village Industries Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er in respect of products of industries mentioned in columns (a) to (d) shall be as mentioned against them. Institutions falling under sub-section (1) or sub-section (2) of section 18 of the U.P. Trade Tax Act, 1948 shall be allowed exemption in proportion to the period during which the business is carried on. The turnover in excess of the exempted turnover or the proportionate exempted turnover, as the case may be, shall be liable to tax at the rate applicable to the sale of commodity to which the turnover relates. (a)(1) Bee-keeping. Exemption up to the turnover of rupees five lakhs in an assessment year in respect of the products of each of the village industry. (2) Matches. (3) Fireworks. (4) Aggarbatti. (5) Palm gur and othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of fruits and vegetable including pickles. (7) Aluminium goods. (d)(1) Hides, skins and leather and leather goods. Exemption up to the turnover of rupees thirty lakhs in an assessment year in respect of the products of each of the village industry. (2) processing, packaging and marketing of cereals, pulses, spices and condiments. (3) Electronic goods. (e)(1) Lok vastra. (2) Poly vastra. (ii) the entry at Serial No. 11 shall be omitted. Notification No. TT-2-2454/XI-9 (53)91-U.P. Act-XV/48-Order-95 dated October 5, 1995 reads as follows: In exercise of the powers under clause (c) of section 4 and section 25 of the U.P. Trade Tax Act, 1948 (U.P. Act No. XV of 1948) read with section 21 of the U.P. General Clauses Act, 1904 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Order-97, dated February 27, 1997 reads as follows: In my opinion, there is no ambiguity in the language of the notification, which had contemplated the exemption only to the extent of Rs. 50 lakhs in an assessment year on the turnover of the manufactured goods by the institution certified by All India Khadi and Village Industries Commission or U.P. Khadi and Village Industries Board. It does not contemplate exemption on each product manufactured by the village industries. Perusal of the notification dated October 1, 1994 shows that where the Legislature wanted to give exemption up to certain limit in respect of the product of each of the village industry. It had been specifically stated that if the intent of the Legislature would be to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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