2025-VIL-707-MP
  1. Home
  2. 2025-VIL-707-MP

VAT High Court Cases

Madhya Pradesh Commercial Tax Act 1994 - Industrial Policy, Non-Resident Dealer, NRI Investment, Interpretation of Exemption Notification - Petitioner applied to have the SPEC Division recognized as a "Non-Resident Dealer" under Notification No. A-3(1)-95-ST-V (43) dated 06.06.1995, to extend the exemption period to 11 years - Industries Commissioner rejected this application on the ground that the NRI investment had already been considered and utilized for granting the status to the Saw Pipe Division and could not be considered again for the new SPEC Division - Whether the same Non-Resident Indian (NRI) equity investment, which was the basis for granting tax exemption benefits to one industrial unit can be considered again to grant similar "Non-Resident Dealer" status and benefits to a new and separate industrial unit established by the same company – HELD - A single NRI investment cannot be used to claim tax exemption benefits for two separate and distinct industrial units - The petitioner itself had obtained two separate registrations and eligibility certificates for the Saw Pipe Division and the SPEC Division, treating them as distinct manufacturing units - The capital investment of 26% equity from NRI promoters had already been claimed and exhausted to secure the "Non-Resident Dealer" status and the associated 11-year tax exemption for the Saw Pipe Division. The notification does not permit the same investment to be leveraged a second time to obtain the same benefit for another new unit - The notification mandates a three-year lock-in period for the NRI equity from the commencement of production, during which the promoter must hold the minimum 26% stake. The investment made in the Saw Pipe Division was locked-in for that unit and could not be notionally transferred to the SPEC Division. The additional investment claimed for the SPEC Division was made after it had commenced production, failing to meet the pre-requisite condition of investment prior to establishment - the decision of the Industries Commissioner to deny "Non-Resident Dealer" status to the petitioner's SPEC Division is upheld. Consequently, the tax assessments raised against the petitioner for the relevant years were deemed to be rightly made – The wit petition is dismissed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST changes in July '25
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?