2011 (3) TMI 1534 - HC - VAT and Sales Tax

Rebate under section 4AA of the Act denied - Held that - Admittedly, the required certificate could not be furnished within the time stipulated in the notification. It was furnished in the year 2008. The applicant has also failed to furnish the certificate of the District Magistrate, as required under the notification, for the grant of the rebate. In this view of the matter, the applicant failed to comply with the requirements of the notification for the claim of the rebate under section 4AA of the Act as the conditions and restrictions have not been fulfilled, as required under the notification. Revision failed

Summary

Issues:
1. Claim of rebate under section 4AA of the Act based on employment proportions.
2. Requirement of certificates from the District Magistrate and Labour Department for rebate eligibility.

Analysis:
1. The applicant established a new manufacturing unit and claimed a rebate under section 4AA of the Act for employing labor in specific proportions. The rebate was previously granted but was denied for the assessment year 1998-99 due to missing certificates from the District Magistrate and Labour Department. The Tribunal remanded the matter for certificate procurement, which was partially fulfilled by obtaining a certificate from the Labour Commissioner but not from the District Magistrate. The applicant contended that since the same labor force was employed in both assessment years, they should be eligible for the rebate. However, the standing counsel argued that the rebate conditions required specific certificates within the stipulated timeframe.

2. The notification under section 4AA of the Act outlined conditions for granting rebates, including the submission of certificates from the District Magistrate and an Assistant Labour Commissioner by a specified deadline. The applicant failed to provide the District Magistrate's certificate within the required timeframe, leading to the denial of the rebate claim. The court emphasized that compliance with the notification's conditions was crucial for rebate eligibility. Despite the certificate from the Labour Commissioner, the absence of the District Magistrate's certificate rendered the applicant non-compliant with the necessary requirements for claiming the rebate under section 4AA of the Act.

In conclusion, the court dismissed the revisions as the applicant failed to meet the essential conditions and restrictions outlined in the notification for claiming the rebate under section 4AA of the Act. The judgment highlighted the significance of timely submission of required certificates, specifically from the District Magistrate, to qualify for the rebate, even if other conditions were met.