TMI Blog2006 (11) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... e incentive given under the aforesaid 1989 Incentive Scheme involves calculation of the actual production of the unit in question. In the absence of any material to indicate the nature of job work undertaken, it would be improper to proceed only on the basis of presumption. The Department's appeal must, therefore, succeed and is allowed and the judgment of both the Rajasthan Tax Board and the High Court dated 18th January, 2000 and 9th February, 1999, respectively, are set aside. - Civil Appeal No. 4944 of 2001 & 4701 of 2006, - - - Dated:- 7-11-2006 - Ashok Bhan, Altamas Kabir and Dalveer Bhandari, JJ. Dr. Manish Singhvi (for K.K. Gupta) and P.V. Yogeswaran, Advocates for the respondent. Sushil Kr. Jain, Puneet Jain and Sarad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for others and the entire production, taking into account the goods manufactured for its own purposes and the job work, would amount to a total of 2193,76 M.T. In other words, if the job work undertaken by the assessee for others is also taken into consideration, along with the production for its own purposes, such production would constitute an increase in the production to more than 25% of the original installed capacity. 3. On 6th July, 1989, the Rajasthan Government, in exercise of its powers conferred by Section 4(2) of the Rajasthan Sales Tax Act, 1954, notified the "Sales Tax New Incentive Scheme for Industries, 1989" which exempted, the industrial units from payment of tax on the sale of goods manufactured by them within the Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " and that the two taken together would far exceed the required increase in the production to the extent of at least 25% of the licensed/registered capacity. 5. Accepting the submissions made on behalf of the assessee that since the definition of the expression "expansion" did not stipulate that the production had to he for its own purposes, the Tax Board held that the assessee was entitled to add the job work performed to its own production for its own purposes to qualify for the Eligibility Certificate under the 1989 Incentive Scheme. 6. The same view was reiterated by the High Court in the revision preferred bv the Department. 7. The question that, therefore, falls for determination in this appeal is whether the job work performe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee was also unable to specify the nature of job work said to have been undertaken by the respondent-assessee. Both the Rajasthan Tax Board and the High Court laboured under the presumption that the job work performed by the respondent-assessee involved manufacture of goods which were similar in nature to its own goods for sale. Such an approach, in our view, was erroneous, since the very nature of the incentive given under the aforesaid 1989 Incentive Scheme involves calculation of the actual production of the unit in question. In the absence of any material to indicate the nature of job work undertaken, it would be improper to proceed only on the basis of presumption. 9. The Department's appeal must, therefore, succeed and is allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
