Case: G.P. Ceramics Pvt. Ltd Vs. Commissioner, Trade Tax, UP

Appellant is a private limited company registered under the Indian Companies Act. It started a new unit on plot Nos.C-28 and C-29, Industrial Area.The Uttar Pradesh State Industrial Development Corporation (UPSIDC) on or about 14.3.1991 and 11.7.1991 allotted plot No.C-28 and C-29, Industrial Area, Orai in the district of Jalaun in favour of respondent. An agreement for lease was executed in its favour on 18.9.1992 by the UPSIDC for setting up a unit for manufacture of fire bricks and B.P. sets. Appellant commenced production in the said unit on and from 15.9.1992. It was registered as a small scale unit with effect from 29.9.1992. The first sale of the finished product was made on 24.10.1992.It filed an application claiming exemption from payment of trade tax on the turn over of manufactured products in Form 46 before the Sales Tax Authorities on 12.3.1993 said to be within the stipulated period of six months from the date of first sale.The Sales Tax Authorities, however, asked for a copy of the deed of lease. The application was also returned to the appellant by the said authority on 4.6.1993 purportedly for the purpose of removing to remove the said objection.A copy of the deed of lease was furnished to him only on or about 16.4.1994.4. The fact that the appellant is entitled to exemption from payment of trade tax is not in dispute. However, whereas according to the appellant it was entitled to such exemption for a period of 10 years from 24.10.1992 to 23.10.2002, the respondents contend that having regard to the fact that a copy of the deed of lease was furnished to him only in 1994, it was entitled to exemption for the period 16.4.1994 to 23.10.2002.5. Aggrieved by an order dated 21.8.1995 of the Additional Director, Industries, Jhansi Division granting an eligibility certificate in favour of the appellant only in respect of the period from 16.4.1994 to 23.10.2002, a review application was filed thereagainst, which was rejected by an order dated 27.7.1996. Appellant preferred two separate appeals against the aforementioned orders dated 21.8.1995 and 27.7.1996 before the Uttar Pradesh Trade Tax Tribunal, Lucknow which were marked as Appeal No.93 of 1996 and 81 of 1996 respectively. The said appeals were dismissed by the Tribunal by an order dated 19.2.1999.6. The High Court by reason of the impugned judgment has dismissed the revision application filed by the appellant herein.

Court's reasoning:
We do not see any conflict in the ratio laid down in the aforementioned two decisions. The question of applying the principle of strict or liberal interpretation would arise only when the plain meaning attached thereto is found to be absurd or anomalous. If a plain meaning given to the provision for the purpose of considering as to whether the applicant had fulfilled the eligibility criteria as laid down in the notification or not is found to be clear, purpose and object the notification seeks to achieve must be given effectState by enacting Section 4-A of the Act and Rule 25 of the Rules intended to encourage setting up of new industries. Such industrial units, however, were required to be set up either on the land owned by the applicant or taken on lease for a period of not less than five years or on the land allotted. However, so far as the land allotted in favour of the applicant by the State or State owned Corporation or statutory Corporation is concerned, no period is required to be fixed under the law. What is required is an allotment of land by issuance of a letter of allotment. Execution of a deed of lease may be a condition for grant of allotment but the grant is not subject to the date of lease or the period specified therein. The statutory rule as also the notification point out a clear distinction between a deed of lease which may be obtained from a private person and the letter of allotment granted by the State or statutory Corporation . The reason for making such a distinction is not far to seek. Whereas in the case of the former, a registered deed of lease is required to be executed if it is for a period of more than one year, in the latter it isexception has been made as regards allotment of land by the State or a statutory corporation. The exemption is being granted by the State. Eligibility certificate is also to be granted by the Industries Department. Each department is supposed to be in touch with the other department of the State or the statutory corporation. The authorities would be in a position to verify the particulars of the letter of allotment furnished by the applicant from the concerned department or statutory corporation. It was not necessary for the authorities of the Industries Department of the Government of Uttar Pradesh to obtain any additional information. When an additional information is required to be sought for, it must be done when the information furnished by the applicant is not complete or otherwise required. It is not in dispute that the attested copies of the letters of allotment had been furnished. If the same subserved the statutory requirements, we do not see any reason as to why the appellant should not be held to be entitled to grant of exemption for the entire period of ten years beginning from 24.10.1992 to