9911796707
TMI Blog1994 (8) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... n. A perusal of the order dated January 18, 1990 indicates that the exemption application under section 4-A of the Act was rejected on the premise that old machinery was brought to bear in the unit. The order, however, indicates that the old machinery which is alleged to have been made use of in the unit, was worth Rs. 1,453 only as against the total investment of Rs. 1,04,104 in the machinery installed and used in the unit. There is recorded no finding that the machinery other than the ones mentioned in the order dated January 18, 1990 worth Rs. 1,453, was also old. The question that crops up for consideration is whether the benefit of exemption can be denied merely because insignificant part of the machinery is old. Notification dated A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose of encouraging an industrial activity, a liberal construction should be put upon the language of the statute........." Clause (1)(d) of the Explanation to section 4-A of the Act, came up for consideration before a Division Bench of this Court in Amit Plastic Industry v. Divisional Level Committee [1995] 96 STC 538; 1994 UPTC 121, wherein the Division Bench has observed that "a liberal and positive approach should be taken and eligibility certificate should not be denied or cancelled on hypertechnical or narrow considerations". It has further been held by the Division Bench in the abovenoted case as under: "No doubt Explanation (1)(d) states that the unit which seeks the benefit of section 4-A of the U.P. Sales Tax Act should be ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 4-A of the Act, requires to be reconsidered by the Divisional Level Committee in accordance with law as expounded in the abovenoted decision. Accordingly the writ petition succeeds and is allowed in part. The impugned order dated January 18, 1990 is quashed. The Divisional Level Committee is directed to reconsider the matter as to grant of eligibility certificate for the purpose of exemption under section 4-A in accordance with law and in the light of the observations made above. Since the matter is being remitted to the Divisional Level Committee, it would be but proper to observe that the question regarding closure of the unit, since April 1988 may also be examined in the light of the clarificatory circular dated February 1, 1988 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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