2003 (5) TMI 481 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of eligibility certificate under section 4-A of the Act.
2. Consideration of subsequent notification during appellate jurisdiction.

Issue 1:
The applicant, a public limited company, sought an eligibility certificate under section 4-A of the Act for expanding and diversifying its unit. The application was rejected by the Divisional Level Committee based on the production date falling after March 31, 2000, as per the notification. The Trade Tax Tribunal upheld this decision. However, during the appeal, a subsequent notification dated December 16, 2002, amended the earlier notification, extending the eligibility to units with production dates before December 31, 2001. The Tribunal refused to consider this amendment, citing its post-appeal issuance. The revision challenged this decision, arguing that the Tribunal should have considered the amended notification during the appeal.

Issue 2:
The High Court analyzed the appellate jurisdiction of the Tribunal under section 10 of the Act. It highlighted that the Tribunal's powers extend to reviewing both facts and laws, akin to the Divisional Level Committee. Referring to legal precedents, the Court emphasized that appellate courts can consider subsequent changes in law to expedite litigation. It cited cases where courts applied amended laws to pending cases, emphasizing the duty to give effect to legislative intent. The Court noted that the amended notification, beneficial to the applicant, should have been considered by the Tribunal, as it was issued during the appeal. Stressing the need for a liberal interpretation of section 4-A, the Court concluded that the applicant's premature application became maintainable due to the amended notification, directing the Committee to reconsider the application and issue the eligibility certificate accordingly.

In conclusion, the High Court allowed the revision, setting aside the orders of the Divisional Level Committee and the Trade Tax Tribunal. The matter was remanded to the Committee for a fresh decision in light of the amended notification, ensuring the applicant receives due consideration for the eligibility certificate under section 4-A of the Act.