9911796707
TMI Blog2011 (4) TMI 1255X X X X Extracts X X X X X X X X Extracts X X X X ..... to as, "the Act") taking the benefit of exemption of entry tax on diesel generator set purchased by the assessee. The assessee is a medium scale unit located at Sy. Nos. 12, 14 and 15 of Kanchanahalli Village, Shanthigrama Hobli, Hassan Taluk, Hassan District, which is registered for manufacture of "sponge iron, steel ingots, steel re-rolled items and for 8MW co-generation of power". A certificate dated June 26, 2004 of the Joint Director, District Industries Centre, Hassan, showing that the assessee is eligible for entry tax exemption on plant and machinery/equipment purchased by the unit for a period of three years from May 29, 2004, was issued. The assessee filed monthly returns for the months from May 2004 to March 2005. The assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t aside the penalty levied. The Additional Commissioner of Commercial Taxes initiated proceedings of revision under section 15(2) of the Act and held that firstly that in the certificate issued by the Joint Director, District Industries Centre, Hassan, DG set is not mentioned, secondly, DG sets are not classifiable in terms of the notification and therefore, he set aside the order of the appellate authority as being prejudicial to the Revenue and restored the original order. Aggrieved by the said order, the assessee is in appeal. The learned counsel for the assessee submitted that though in the certificate issued by the Joint Director of Industries and Commerce, DG set is not specifically mentioned, it falls within the definition of "plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etrol, diesel, furnace oil, naphtha, and LSHS used as consumables or for captive power generation units) into a local area caused by a new industrial unit mentioned in column (2) of the table below located in the zones specified in column (3) and for the period mentioned in column (4) thereof. Sl. No. Type of industry Location of the industry Period of exemption 1 Tiny/small/medium and large scale industrial units Situated in Zone B specified in annexure I to Government order Three years from the date of commencement of commercial production. The procedure prescribed for seeking exemption provides that the applicant shall produce the required documents. Once such document is as under:- "(b) the value of fixed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on notification applies. Diesel generating set is also one such machinery to which the exemption notification applies if it is mentioned in the certificate. However, at the same time, if the said machinery is not mentioned in the certificate to be issued, it cannot be said that assessee is not entitled to claim exemption. If diesel generating set is required in the production process and when it is purchased along with the machinery equipment, the petitioner is entitled to exemption. In fact, the appellate authority has carefully considered this aspect of the matter, looked into the notification, relied on a judgment of this court and has correctly held that the assessee is entitled to exemption. The view taken by the revisional authority ..... X X X X Extracts X X X X X X X X Extracts X X X X
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