9911796707
TMI Blog1995 (1) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... 93 to be read as for a period of four years with effect from March 24, 1990 to March 23, 1994, instead of July 20, 1992 to March 23, 1994. The facts of the case are that the petitioner No. 1 is a registered partnership firm under the U.P. and Central Sales Tax Act. It applied for exemption under section 4-A of the U.P. Sales Tax Act, though initially on January 21, 1992, its application was rejected but on review ultimately the eligibility certificate was issued on March 24, 1993, which is annexure 3 to the petition. It is also not in dispute that the date of the first sale of the said unit is March 24, 1990, which is also the date of the production of the unit. When the petitioner received the said certificate limiting the period of exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trial unit' means an industrial unit holding permanent registration with the Directorate of Industries, Uttar Pradesh, as a small, handloom or handicraft industry or an industrial licence granted by the Iron and Steel Controller or the Textile Commissioner or the Director, Sugar or the Director-General of Technical Development or the Government of India, and (a) registered under the Indian Factories Act, 1948 or established after obtaining a term loan from the U.P. Financial Corporation or a scheduled commercial bank, in the case of units with capital investment not exceeding three lakh rupees; or (b) registered under the Indian Factories Act, 1948 or having applied for registration under the said Act and deposited the required fee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is sanctioned and disbursed before or after the undertaking is set up (where the capital investment in the undertaking does not exceed three lakh rupees)." Scrutinizing this notification dated January 29, 1985, we find in the Explanation, the words used are ".........an industrial unit holding permanent registration" while under the aforesaid amending Act in section 4-A, Explanation (1)(a) the words used are "registered permanently or otherwise". What is also significant is sub-clause (b) of this Explanation referring to registration under the Factories Act, 1948 qualifies not only such unit which is registered under the Factories Act but even where an application for the registration in respect thereof is made. This scheme and the use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and not sustainable. Learned Standing Counsel has urged that this decision has not taken into consideration section 4-A(5)(c) coupled with sub-clause (e)(i) of Explanation of section 4-A which requires that the unit must fulfil all the conditions specified in this regard under the Act, Rules or notifications made therein, and once notification specifies the condition of permanent registration and that not being complied with, the rejection of the petitioner's application was justified in law. The relevant sub-section (5)(c) is quoted as under: "(c) in relation to a new unit referred to in Explanation (1), where the conditions specified in clauses (a) to (d) of the said Explanation (1) are fulfilled on a date later than the date of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the conditions specified in the Rules and the notification. The only question is whether the requirement which is pre-requisite for compliance is mandatory or directory in nature. If the compliance has been made, the requirement which is for grant of exemption existed on record and only on account of not passing of any order by the concerned authority, delayed the date of the registration could this delay, which makes the date of registration late disentitles unit holder for his claim of exemption. Question of interpretation in a fiscal statute is well-settled. Whenever there is provision, for increasing production of any goods or for promoting development of any industry in a State and on the basis of this incentive the unit holder a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly, we direct the respondents to rectify the eligibility certificate, true copy of which is annexure 1 to the writ petition, within three weeks of production of a certified copy of this judgment before the appropriate authority and we further direct the respondents to rectify/cancel the assessment orders for the relevant years in accordance with the rectified eligibility certificate." It is true that the said decision has taken into consideration the registration under the Factories Act and the principle of sub-section (5)(c) to be directory in nature and it is equally applied in the case of registration of sub-clause (a) also where the permanent registration is required of a new unit under section 4-A. In the present case admittedly the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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