TMI Blog2011 (11) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... in clause 2(f) of the Scheme, reads as under: 2(f) 'Expansion' means increase in the value of fixed capital investment by not less than 25 per cent of the net fixed assets of the existing project and accompanied by an increase in the production to the extent of at least 25 per cent of the original licensed/registered capacity. Explanation. The benefits of sales tax incentive for expansion shall be admissible to the eligible units only after they have achieved at least 85 per cent of their licensed/registered capacity before expansion. The increase in production upon expansion was to be computed on the basis of production made by the assessee-industry. The question which cropped up in the matter was whether such production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal is whether the job-work performed by the assessee in addition to its production for its own purposes can be taken into consideration for the purposes of clause 2(f) of the 1989 Incentive Scheme, as had been held both by the Rajasthan Tax Board and the High Court. Although, the Rajasthan Tax Board was of the view that the job-work performed by the assessee would have to be added to the production capacity of the assessee's unit, there is no reasoning in support thereof. The said lacuna has been addressed by the High Court by holding that the expression used in the statute did not indicate that the manufacture of goods for sale must be by any particular individual and that the entire production in order to make the unit eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al must, therefore, succeed and is allowed and the judgment of both the Rajasthan Tax board and the High Court dated February 9, 1999 and January 18, 2000, respectively, are set aside. There will, however, be no order as to costs. The honourable apex court thus observed that since nature of job-work undertaken by the assessee during the relevant period was not specified and established before the Revenue authorities, therefore, whether such production for third parties on the basis of job-work could be included within the meaning of term increase in production as envisaged in clause 2(f) of the Incentive Scheme, 1989 or not, therefore, the judgments of the Rajasthan Tax Board and the High Court were liable to be set aside with fresh p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble apex court has not laid down that the production done by the assessee on the basis of job-work for others as such would not form part of production for the purposes of clause 2(f) of the Incentive Scheme, 1989. Setting aside of judgment of the High Court and Rajasthan Tax Board and consequential remand order apparently meant that competent Revenue authorities had to give these findings of facts on the basis of evidence adduced by the assessee-petitioner before them. If the job-work was found to be of some other items or goods altogether, the same would obviously not be increase in production as envisaged in section 2(f) of the Scheme, but if however, production done on the basis of job-work of third parties is of similar goods or the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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