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TMI Blog1988 (9) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... e the dealer's factory is situated in Calcutta Metropolitan District area and seven years for those who are outside the Calcutta Metropolitan District area. Thereafter on and from 1st April, 1983, rule 3(66a) came into force whereby the tax holiday exemption period was reduced to three years. The petitioner applied for sales tax registration on 10th March, 1983, and the registration certificate was granted on 20th June, 1983, giving retrospective effect from 10th April, 1983, and the petitioner applied for eligibility certificate on 29th June, 1983, i.e., within one month from the date of order of granting the registration certificate. The learned Assistant Commissioner, South Circle, by his order dated 10th January, 1984, granted eligibility certificate under rule 3(66a) though the petition for granting such eligibility certificate was made praying the tax holiday exemption under rule 3(66) of the Bengal Sales Tax Rules, 1941. The said certificate so issued by the said order was valid from 10th April, 1983 to 9th January, 1984. Thereafter the said certificate was renewed on 7th May, 1984, for the period 10th January, 1984 to 30th November 1984. On 3rd May, 1985, by another order p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th from the date of accrual of its liability. The liability to pay tax accrued under section 4(2) of the Bengal Finance (Sales Tax) Act, 1941, on 10th February, 1983. The Commercial Tax Officer granted the certificate of registration on 20th June, 1983, with retrospective effect from 10th April, 1983, and the said certificate of registration was received by the petitioner after 20th June, 1983, and before 29th June, 1983. It made the application immediately thereafter under rule 3(66) of the said Rules for granting eligibility certificate in favour of the petitioner. The Assistant Commissioner granted eligibility certificate under rule 3(66a) of the Rules on the ground that the application for granting eligibility certificate was made by the petitioner after 14th April, 1983, and as the rule 3(66) came to an end on 31st March, 1983. It appears from record that the petitioner's application for registration made on 10th March, 1983, was only granted on 20th June, 1983, with effect from 10th April, 1983. Therefore, the petitioner had no opportunity to make the application earlier, i.e., within 31st March, 1983. It is the contention of the petitioner that had the certificate of regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect from 1st April, 1983, in case of application for eligibility certificate made on 29th June, 1983, i.e., after 1st April, 1983, when the production was started on 18th November, 1982, i.e., after 1978 and before 14th March, 1983, and the liability accrued for registration under section 7 on 10th February, 1983, and certificate was granted on 20th June, 1983, giving retrospective effect from 10th April, 1983. It is the contention of the petitioner that the petitioner admittedly started production of its goods on and from 18th November, 1982, and hence the petitioner's application for eligibility certificate comes under rule 3(66) as it falls within the explanation to the rule 3(66) to mean newly set up small-scale industries. According to rule 3(66) only a registered dealer may apply for certificate for eligibility on or about 1st April, 1983, and the petitioner being the registered dealer made an application on 29th June, 1983, i.e., after 1st April, 1983, even after the introduction of the new rule 3(66a) with effect from 1st April, 1983, though the petitioner made an application for getting it registered under section 7 of the Act on 10th March, 1983, i.e., within 30 days of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also no dispute that the petitioner made his application for eligibility certificate under rule 3(66) of the Bengal Sales Tax Rules although the certificate of eligibility was granted under rule 3(66a) by the department. It is also true that if the petitioner could obtain the eligibility certificate under rule 3(66), the period of its exemption could have run for a period of 5 years. But this rule 3(66) came to an end on 31st March, 1983, and on and from 1st April 1983 new rule, namely, rule 3(66a) came into statute book with more or less same terms and conditions as in rule 3(66) but the period of exemption was brought down to 3 years from 5 years under the new rule. Inasmuch as the new rule 3(66a) was introduced with effect from 1st April 1983, the application for eligibility certificate received from dealers on or after 1st April, 1983, were naturally required to be dealt with under rule 3(66a). In the instant case the petitioner admittedly applied for eligibility certificate on 29th June 1983, after being registered as a dealer under the Act on 20th June 1983, with retrospective validity of the registration certificate from 10th April, 1983, and as such the said applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions made therein. According to the learned Advocate for the respondents, proviso to rule 3(66)(iv) of the Bengal Sales Tax Rules, 1941, if and when read with main clause (iv) will clarify the position. It has been submitted that this would only mean that registered dealer may apply for a certificate of eligibility on or after 1st April, 1983, but before 14th April, 1983, in order to enjoy the benefit of rule 3(66) under the said proviso to clause (iv) as inserted with effect from 1st April, 1983. According to the learned Advocate for the respondents in the instant case the petitioner although was registered as a dealer retrospectively on and from 10th April, 1983, made application for eligibility certificate on 29th June, 1983, that is long after the prescribed period which was confined to 1st April, 1983 to 14th April, 1983, for a registered dealer in order to enjoy the benefit of rule 3(66) and as such the application for eligibility certificate though filed under rule 3(66) could not be treated as such but the eligibility certificate was granted under rule 3(66a) of the said Rules and was thereafter renewed from time to time under the said Rules. Under such circumstances i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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