Judgment

Ruma Pal, J.—The issue in these appeals is the extent of the entitlement of the respondent to the benefit of exemption from payment of trade tax granted under a notification dated 27th July, 1991 issued under Section 4A of the U.P. Trade Tax Act, 1948 (hereinafter referred to as ‘the Act’).

2. The respondent manufactures and sells ceramic tiles in its factory at Sikandarabad, District Bulandshahr in the State of Uttar Pradesh since 1988 having received an industrial licence from the Government of India to do so. The annual production capacity of the respondent was 12000 TPA (tonnes per annum). The total investment made in the unit upto 12th August, 1988 was Rs. 16,21,54,452/- and the first sale was effected on 16th August, 1988.

3. A notification issued on 26th Decem­ber, 1985 (referred to as the 1985 Notification) under Section 4-A of the Act granted a six years’ tax exemption in respect of new units having an investment in excess of 3 lakhs starting production on or after the first date of October, 1982 but not later than the first day of March, 1990. Admittedly the respondent’s unit fulfilled the conditions mentioned in the notification and, since its investmen