TMI Blog2022 (5) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... nsion etc. Of course, no bar lies for excess production which may be accomplished with more than one shift but the exemption which the Petitioner is entitled would stand restricted to 15000 MT and cannot cover the excess production. Admittedly, no expansion has been undertaken by the Petitioner and notwithstanding the fact that there is excess consumption of power and raw materials during the impugned period, such exemption can only be made available only to the extent of production of 15000 MT that being the installed capacity and for the excess production of 1670 MT, the unit is ineligible for the concession and hence, in the considered view of the Court, the Tribunal rightly upheld the assessment for the year 1995-96 and concluded tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment under Section 12(4) of the Orissa Sales Tax, 1947 (hereinafter referred to as OST Act ) was initiated. The Sales Tax Officer, Rourkela II Circle, Panposh (STO) by assessment order dated 31st March, 1989 held that the installed capacity of the Petitioner being 15000 MT, the production and sale of 1670 MT of cement is in excess and therefore, it is not entitled to sales tax exemption, instead liable to pay tax @ 12% over a turn over determined at Rs.28,35,660/- with a tax effect of Rs.3,40,279/- along with surcharge of Rs.40,027,92/-. Then, the Petitioner being aggrieved of the order of assessment under Annexure-4 filed an appeal before the Assistant Commissioner of Sales Tax, Sundergarh Range, Rourkela (ACST) by claiming that since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sa Sales Tax Rate Chart notwithstanding the installed capacity of 15000 MT of the unit and in that respect, the Project Manager, District Industries Centre (PM, DIC) did offer clarification to the effect that such capacity stands on a single shift basis and that apart, there is no bar or prohibition as such against excess production. In other words, the contention is that irrespective of the installed capacity as per Annexure-2 and 3, the unit being a small scale industry is entitled to sales tax exemption over the entire production. 6. On the other hand, Mr. Padhy submits that the Tribunal correctly held that the Petitioner is liable to pay tax @ 12% in respect of the excess production of 1670 MT from its unit. It is contended by Mr. Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the clarification of the DIC held it otherwise and against the plea of tax concession. 9. The industrial unit was to avail tax exemption in terms of I.P.R.1989. The installed capacity of the unit is that which stands certified under Annexure-2 and 3 and it cannot be changed or modified unless there is expansion/modernization/diversification. In other words, the installed capacity can be altered subject to the justification by amending the registration certificate. In the instant case, the claim of the Petitioner s case is not based on any such expansion etc. Of course, no bar lies for excess production which may be accomplished with more than one shift but the exemption which the Petitioner is entitled would stand restricted to 15000 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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