9911796707
TMI Blog2017 (4) TMI 1326X X X X Extracts X X X X X X X X Extracts X X X X ..... of 5100 M.T. of cotton yarn produced by the petitioner and has assessed the petitioner to tax at the regular rate beyond the aforesaid limit of production. The learned counsel appearing for the petitioner submits that the petitioner company is engaged in the manufacture and sale of yarn from its industrial unit established in the industrial area, Mandideep, District Raisen. It is submitted that the petitioner had initially installed the industrial unit with the capacity of 4189 M.T. and had been granted exemption from payment of sales tax, purchase tax and central sales tax for a period of 9 years commencing from 29.3.1996 to 28.3.2005 and an eligibility certificate in this regard was issued to the petitioner as per the terms and condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the total production of the petitioner, which was more than 5100 M.T by misinterpreting the eligibility certificate dated 29.5.2014. It is stated that the petitioner had approached the revisional authority against the order of assessment pertaining to the assessment period 1.4.2004 to 31.3.2005, but the revisional authority has taken the same view, hence this petition. The learned counsel for the petitioner has taken this Court through the certificate of eligibility dated 29.5.2014 filed alongwith the petition as Annexure P/4 and contended that on that basis, the petitioner is entitled to exemption from payment of tax on the total annual production made by it, subject to two conditions, firstly that the annual production in the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty certificate. On a bare perusal of the paragraphs 1,2 and 3 of the eligibility certificate (Annexure P/4), it is apparent that the petitioner has been granted an eligibility certificate to avail of the facility of exemption from payment of tax under category 'C' backward district on account of the fact that the petitioner has installed the manufacturing unit in the backward district. The eligibility certificate dated 29.5.2014 further provides that expanded installed capacity of the industrial unit is permitted to enhance production from 4189 M.T. to 5100 M.T. with a clear and specific note under paragraph 2 to the effect that the unit will not be able to avail of said facility for the period, in which annual production of the uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extent of said quantum, which shall be 250% of the capital investment in fixed assets of Rs. 693.00 lakhs, even if the period of 9 years has not expired. From a bare perusal of the aforesaid certificate, it is evident that apart from the said condition as enumerated above, there is no such condition in the certificate which would disqualify or disentitle the petitioner to avail of exemption from payment of tax, in case of its annual production is more than 5100 M.T. per year. The only stipulation which would come into play in this regard would be the maximum limit of exemption, that has already been prescribed i.e. 250% of the capital investment in fixed assets of Rs. 693.00 lakhs. In the circumstances, we are of the considered opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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