Hon'ble Kashi Nath Pandey,J.
Connect with Writ Tax No. 934 of 2011.
In M/s Vam Organic Chemicals Ltd. vs. State of U.P. and others 2003 UPTC 467 this Court allowed the writ petition and quashed the Circulars dated 20th June, 2000, 25th July, 2000 and 5th August, 2000 issued by the Commissioner, Trade Tax, U.P. for deleting diesel oil, furnace oil or other liquid fuels or gaseous fuels, under explanation to Section 4-B (2) of the Trade Tax Act. In Civil Appeal No. 1929 of 2004 State of Uttar Pradesh & ors vs. Vam Organic Chemicals Limited 2010 U.P.T.C. 413 the Supreme Court set aside the judgment of the High Court and directed the assessing authority to give notice and decide the objections after hearing each case on its own merits uninfluenced by decision of High Power Committee dated 12th June, 2000 and Circular dated 20th June, 2000 and others.
After issuing a notice dated 26.3.2011 the assessing authority has in the present case deleted the exemption on the purchase of the H.S.D. and LDO in the Recognition Certificate dated 31.3.2011 used in generators for generating electricity for use in the manufacture w.e.f. 30.8.2000.
Shri Subham Agarwal submits that the HSD and LDO are used in the generators for generating electricity for its use in the manufacture and thus the purchase of LDO and HSD would clearly fall within the explanation to Section 4B (2) of the Act. He further submits that in any case the deletion of LDO and HSD in the eligibility certificate will be applicable from the date of notice, and not retrospectively.
Prima facie we find substance in the submission that the petitioner uses LDO and HSD in generating sets for generating electricity for use in the manufacture and thus the expenditure incurred for purchase of LDO and HSD, qualifies for exemption.
The matter requires consideration.
The respondents are allowed four weeks' time to file counter affidavit. The petitioner will have one week thereafter to file rejoinder affidavit.
Until further orders, the consequential effect of the impugned order dated 31.3.2011, shall remain stayed.
Order Date :- 15.11.2011 RKP