SC stays Bhushan Steel judgment on capital vs. revenue nature of sales tax subsidy

SC stays operation of Delhi HC judgment in Bhushan Steels and Strips Ltd on taxation of sales tax subsidy as revenue receipt absent capital utilization condition, issues notices for hearing of assessee's SLP; HC had held that amount received by assessee (running a manufacturing unit in a specified backward area) for AY 1995-96 by way of exemption of sales tax payments under the UP state subsidy scheme was a taxable trading receipt; HC had rejected assessee’s stand that since the quantitative limit of subsidy was linked to capital expenditure, the subsidy was capital in nature as it meant replenishing the capital expenditure; HC had clarified that the quantitative limit indicated therein was only a reference point, further HC had observed that assessee had the flexibility of using the amounts retained for any purpose, not necessarily capital