COMMNR. OF TRADE TAX, U.P. vs M/S. KAJARIA CERAMICS LTD.

The Supreme Court addressed the entitlement of the respondent to tax exemption under Section 4A of the U.P. Trade Tax Act, 1948, specifically regarding the applicability of the 1991 Notification for units undergoing expansion. The Court held that the respondent was eligible for tax exemption on the increased production capacity, as the conditions of the notification were met, and the exemption period should be calculated from the date of first production of goods manufactured in excess of the base production. The judgment affirmed the respondent's entitlement to the benefits of the notification, thereby allowing the appeal.