9911796707
TMI Blog1997 (7) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... ty certificate on the date of starting production, as such the same was cancelled. 2.. As against the said order the applicant-assessee preferred an appeal before a Full Bench of the Sales Tax Tribunal, Lucknow. The Tribunal considered the matter and held that production was started on August 28, 1984 by the appellant-unit. 3.. The applicant has contended that the existing conditions for grant of eligibility certificate was the notional date of starting production, i.e., the date when the raw materials were purchased or the unit got the electric connection. On that basis the applicant was given the eligibility certificate by the authorities under the provisions of section 4-A of the Act, though the actual production at the unit commence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f granting the certificate on September 10, 1984 granted the certificate on and from August 28, 1984. It appears that long after the applicant has enjoyed the exemption, as granted, which expired on August 27, 1988 and now being saddled with a huge liability under the amended provisions of section 4-A(3) of the Act which was amended by the Amendment Act No. 28 of 1991 which has amended the previous provisions of the Act by inserting certain conditions on the basis of which an eligibility certificate could be cancelled even after the expiration of the date of such certificate. 4-A(3). Where the Commissioner of Sales Tax is of the opinion that the facility of exemption from, or reduction in the rate of tax obtained on the basis of an eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date when the eligibility certificate was given the authorities were in the knowledge of the fact that no S.S.I. registration has been received by the petitioner-unit and the same was to come subsequently which was issued on and from September 10, 1984 the date of actual production. On the date when such certificate was given the applicant was clearly entitled to the eligibility certificate. The availability of the S.S.I. registration only from the date of the grant of eligibility certificate was not a condition precedent so long as such certificate would be issued by the authorities in due course. A few days delay in issuing such certificate or issue of such certificate on and from a subsequent date in accordance with the rules and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to such facility for a lesser period or from a different date . That means the Commissioner could have withdrawn the facility between the period August 28, 1984 to September 10, 1984. In the fact of this case that was only possible alternative to the Commissioner to do so, he could have cancelled the registration only for a period of 13 days. However, it appears that the Commissioner has acted arbitrarily in violation of the provisions of the Act and as such this action is totally without jurisdiction. The Commissioner should realise that for no fault of the applicant, the applicant should not be penalised for omission and commission of the department who were equally at fault in granting the eligibility certificate if according to them s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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