STATE LEVEL COMMITTEE vs MORGARDSHAMMAR INDIA

The Supreme Court addressed whether the respondent-unit qualifies as a 'new unit' under Explanation (i) to sub-section (2) of Section 4-A of the U.P. Sales Tax Act. The Court upheld the High Court's decision, which mandated a re-examination of whether the machinery acquired from M/s. Modi Steels had been used in any other factory, thereby determining the eligibility for the exemption certificate. The Court concluded that if the machinery was not previously used, the respondent-unit would be entitled to recognition as a new unit under the specified section.