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TMI Blog1986 (5) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... up small-scale industry" and as such, the sale of goods produced by this unit is entitled to be deducted from its gross turnover by virtue of rule 3(66a) of the Bengal Sales Tax Rules, 1941. Rule 3(66a) provides: "3. In calculating his taxable turnover a dealer liable to pay tax under section 4 or 8(3) of the Act may deduct from his gross turnover, his turnover on the following, namely: ................ (66a) (i) Sales by a newly set up small-scale industry of goods or class of goods, other than those included in Schedule X appended to this clause, manufactured by it during the period of three years, if the said industry is situated within the area of the Calcutta Metropolitan District as described in the Schedule to the Calcutta Metro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aims that it has complied with all the requirements of rule 3(66a). It keeps separate accounts of the newly set up small-scale industrial unit, issues serially numbered cash/credit memos for sale of goods manufactured in this unit, keeps vouchers and other documents for purchase of plant and machinery for establishment of such industry, and also maintains other records to prove that sales claimed exempt under rule 3(66a)(i) are all goods manufactured in such industry set up by the petitioner. The petitioner in order to get benefit of tax exemption provided by rule 3(66a) made an application on 19th December, 1984, for a certificate of eligibility for the period beginning from July, 1984. The petitioner produced all its books of accounts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation was rejected on this ground. "The dealer is a manufacturer of steel castings. Rule 3(66a) of the B.S.T. Rules, 1941, expressly provides that the certificate of eligibility shall not be granted or renewed if the dealer violates any conditions referred to in subclause (i). In the instant case the dealer violated an important condition during July, 1984-85, by charging sales tax in sale bills for which the original application of the dealer for E.C. had been rejected. Since the rule expressly provides not to grant or renew an E.C. for violation of condition referred to in subclause (i) of rule 3(66a) of the B.S.T. Rules, 1941, I have no other alternative but to reject the dealer's application of eligibility certificate for the period fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fail to see how the petitioner, if he fulfils all the requirements of the rule, can be refused to be given a certificate of eligibility on the ground that such certificate was not issued to him on an earlier year for infraction of the rules. If a dealer fails to keep separate accounts in respect of sales of newly set up industries in the first year, can such a dealer be refused eligibility certificate on that ground in the second year when he rectifies the error and keeps separate accounts in respect of such sales. In my opinion, the question whether a dealer is entitled to eligibility certificate has to be considered afresh every year. Whether the dealer fulfils all the conditions has to be examined at the time of original grant of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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