Judgment

Nanavati, J.-The question that arises for consideration in these two appeals is whether ‘toffee’ is ‘sweetmeat’ or a commodity of a like nature and therefore the appellant’s industrial units making toffees, though newly set up, were not entitled to the benefit of exemption from payment of sales tax under notification dated 27.7.1991, issued by the State of Uttar Pradesh, in exercise of its powers under Section 4A of the Uttar Pradesh Sales Tax Act, 1948 (for short ‘the Act’).

2. With a view to step up economic growth by promoting development of certain industries in the State, the U.P. State Government decided to grant exemption from payment of sales tax to new industrial units and to units undertaking expansion, diversification or modernization. To achieve that object, it issued a notification on 27.7.1991 under Section 4A of the Act. For ready reference, we quote below the rele­vant part of that notification.

“Whereas the State Government is of the opinion that for promoting the development of certain industries in the State it is necessary to grant exemption from or reduction in rate of tax to new units and also to units which have undertaken expansion, diversification or