JANTA MACHINE TOOLS vs STATE OF U.P. & ORS.

The Supreme Court held that under Section 4A of the Uttar Pradesh Sales Tax Act, 1948, the date of commencement of production for exemption purposes is determined by the actual use of electricity and the purchase of raw materials, not by trial production dates. The Court found that the rejection of the appellant's exemption application was based on a misconception of facts, as there was no evidence to support the claim that production commenced prior to the relevant date. Consequently, the appellant was entitled to the exemption as production commenced before the cutoff date of 31.3.1985.