STATE LEVEL COMMITTEE AND ANR. versus M/S. MORGARDSHAMMAR INDIA LTD.

STATE LEVEL COMMITTEE AND ANR. versus M/S. MORGARDSHAMMAR INDIA LTD.

For exemption under section 4-A of the U.P. Sales Tax Act, if machinery/accessories/components used in a factory or workshop were acquired for use in any other factory or workshop in India, the factory/workshop is disqualified from being regarded as a 'new unit'; actual prior use is not necessary, acquisition is sufficient.

Parties
Appellant: State Level Committee; Respondent: M/s. Morgardshammar India Ltd.
Jurisdiction
India
Judgment Date
10 November 1995
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 21.9.94 of the Allahabad High Court in C.m.w.p. No. 984 of 1991
Outcome
Appeal allowed; judgment of High Court set aside; writ petition of respondent dismissed.
Legal Topics
Exemption From Sales Tax, Definition of 'new Unit', Interpretation of Statutory Exemptions, Machinery Acquisition and Use
Sales Tax Taxation Exemption From Sales Tax Definition of 'new Unit' Interpretation of Statutory Exemptions Machinery Acquisition and Use

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Parties

State Level Committee

Appellant

M/s. Morgardshammar India Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 21.9.94 of the Allahabad High Court in C.m.w.p. No. 984 of 1991

Legal Issues

  1. 1 Whether the respondent unit qualifies as a 'new unit' within the meaning of Explanation (i) to section 4-A(2) of the U.P. Sales Tax Act
  2. 2 Whether machinery acquired for use in any other factory or workshop disqualifies the respondent from exemption under section 4-A

Ratio Decidendi

For exemption under section 4-A of the U.P. Sales Tax Act, if machinery/accessories/components used in a factory or workshop were acquired for use in any other factory or workshop in India, the factory/workshop is disqualified from being regarded as a 'new unit'; actual prior use is not necessary, acquisition is sufficient.

Court Disposition

Appeal allowed; judgment of High Court set aside; writ petition of respondent dismissed.

Orders

  • Writ petition filed by respondent in the High Court is dismissed.
  • No costs.