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3. The lead case is Civil Appeal No. 3026 of 2004. The appellants are public limited companies, manufacturing cement in their manufacturing units in Rewa district situate in the State of Madhya Pradesh after procuring fly-ash from the thermal power stations in the State of Uttar Pradesh and thereafter selling the manufactured product viz. Cement in the districts of State of Uttar Pradesh.

4. The fly-ash is produced from coal combustion and normally dispersed into the atmosphere which contains toxic chemicals that can cause environmental pollution and hazards. Therefore for utilization of fly-ash and to control pollution, cement projects were set up to make use of the fly-ash generated from the power plants.

5. To encourage manufacturers using fly-ash in manufacturing of their products, the Government of Uttar Pradesh in exercise of its powers under Section 5 of the Act, had issued notification dated 18.06.1997, granting “rebate of tax” to the dealers in the State of Uttar Pradesh excluding all other dealers manufacturing cement outside the State of Uttar Pradesh using fly-ash purchased in the State of Uttar Pradesh. Annexure appended to the notification provided for name of the districts and the period for which the rebate will be allowed. The notification prior to its rescinding only specified the percentage of rebate of tax to be granted depending on the content of fly-ash used by the dealers in the manufacturing of cement.

b) name of thermal power stations from which fly-ash is purchased or received;
c) weight of fly-ash;
d) name of manufactured goods;
e) weight of manufactured goods
f) weight of fly-ash used in manufacturing of such goods
g) weight of other goods used in manufacture of such goods;
iv) the total weight of manufactured goods and percentage of fly-ash used, should be mentioned on goods of packing of such goods as far as possible.
|ANNEXURE (Supra) | Explanation:- The verification of percentage of fly-ash used by fly-

ash based industries shall be made on the basis of Government orders issued in this behalf from time to time.”

8. To complete the narration, it is apropos to state that the aforesaid notification is rescinded by the State Government with effect from 14.10.2004 by issuing notification dated 14.10.2004.