9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1991 (1) TMI 428 - HC - VAT and Sales Tax
Issues:
Challenge to the Divisional Level Committee's authority to review the exemption order. Validity of the petitioner's entitlement to exemption for five years. Jurisdiction of the Divisional Level Committee to modify the exemption period. Analysis: The petitioner was initially granted an eligibility certificate for a five-year exemption period starting from March 9, 1984. However, the Joint Director of Industries later issued letters stating that the exemption was only valid from April 1, 1984, to March 8, 1987, due to a reconsideration by the Divisional Level Committee based on capital investment criteria. The petitioner contested the orders on the grounds that the Divisional Level Committee lacked the authority to review the exemption order and that the unit was legally entitled to a five-year exemption period. The petitioner cited relevant court decisions to support its claim. The respondents argued that the petitioner was not entitled to a five-year exemption based on government orders and notifications applicable to units in Meerut with capital investments below a certain threshold. The Court found it unnecessary to determine the entitlement period issue as the petition succeeded on the challenge to the Divisional Level Committee's authority to review the order. The Court emphasized that the Committee exceeded its jurisdiction by modifying the exemption period without the power to do so. The Court held that the Divisional Level Committee did not have the inherent power to correct errors on merits unless specifically conferred by statute, which was the Commissioner's prerogative under the U.P. Sales Tax Act. Therefore, the impugned orders were deemed unsustainable. Consequently, the petition was allowed, and the orders dated September 10, 1987, and December 29, 1987, were quashed. The Court also directed that the tax determined under the impugned assessment orders should not be collected from the petitioner until the eligibility certificate was lawfully modified.
|
