The main legal point established in the judgment is the interpretation of Section 4-A of the Act and the eligibility for exemption from tax on the turnover of sales in relation to base production.

ARIJIT PASAYAT, J.

( 1 ) LEAVE granted.

( 2 ) CHALLENGE in this appeal is to the order passed by a learned Single Judge of the Allahabad High Court disposing of two revision petitions, i. e. Trade Tax Revision No. 723 of 1996 and Trade Tax Revision No. 724 of 1996 preferred by the respondent (hereinafter referred to as 'the Assessee') under section 11 of the Uttar Pradesh Trade Tax Act, 1948 (in short 'the Act' ). The revision petitions related to the assessment year 1992-93 in respect of assessments framed under the Act and the Central Sales Tax, 1956 (in short 'the Central Act' ). By the impugned order, the High Court held that the turnover of the base production in accordance with Clause (6) of the notification No. 1093 dated 27. 07. 1991 (hereinafter referred to as 'the Notification') has to be taken up for the whole of the assessment year.

( 3 ) STAND of the Assessee before the High Court was that such turnover has to be taken for the whole of the assessment year and if it is found that the Unit undertaking expansion has exceeded the base production turnover in the whole of the assessment year, then the Unit shall be entitled to avail the benefit of exemption from payment of tax in respect of the turnover which is in excess of the base production for the whole of the assessment year which has to be declared under rule 41 (8) of the Uttar Pradesh Trade Tax Rules, 1948 (in short the 'rules' ).

( 4 ) STAND of the revenue, on the other hand, was that such interpretation goes against the very object of Section 4-A of the act.

( 5 ) BRIEF facts giving rise to the present revisions are that the assessee is a Private Limited Company incorporated under the companies Act, 1956 having its registered office at B-67, south Extension, Part-II, New Delhi, and factory at Plot No. 34-A/2, Site No. 4, Sahibabad in the district Ghaziabad. Applicant was engaged in the business of manufacture of bulk drugs. It was granted eligibility certificate under Section 4a of the Act under Notification No. ST-II-1093/xi-7 (42)-86-UP Act-XV/48-Order 91, dated 27/7/1991 in respect of the expansion undertaken by the assessee to manufacture paracetamole, which is bulk drug. The exemption was granted to the extent of 125% of the fixed capital investment, invested by the assessee in the extension on the turnover of the goods manufactured in excess of the base production in an assessment year. The base production was fixed at 172. 8 MT. thus, the assessee was entitled for the benefit of exemption under Section 4-A of the Act in assessment year on the production exceeding the base production of 172. 8 MT. During the assessment year 1992-93 total sales made by the assessee from 1/4/1992 to 31/3/1993 was 382. 125 MT. both within the State of the UP as well as outside the State of UP including the central sales. Thus, according to the assessee, it was entitled for the benefit of exemption under Section 4-A of the act on the turnover of the production of 209. 325 MT. It claimed that during the assessment year in dispute, returns had been filed disclosing the total sales made by it and had claimed exemption from payment of tax both under the Act and Central Act only to the extent of sales made by it to the extent of 140. 75 MT. during the whole year. Assistant commissioner, Trade Tax Ghaziabad, vide his assessment order dated 1/3/1995 accepted the books of account and the disclosed turnover but restricted the claim of exemption to the extent of 70. 325 MT instead of 140. 75 MT. Aggrieved by the order of the assessing authority, assessee filed appeals before deputy Commissioner (Appeals), who vide order dated 31/7/1995 dismissed both the appeals. Deputy Commissioner (Appeals) held that the exemption cannot be claimed from payment of tax upto the period till the base production turnover has not been achieved. He was of the view that exemption was available only after the date on which base production is achieved, i. e. if the base production is achieved in third