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1997 (8) TMI 474

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..... Sri U.K. Pandey, learned Standing Counsel for the respondent. 3.. The Government of Uttar Pradesh vide Government order dated September 30, 1982 announced the scheme for exemption from sales tax in respect of new units starting production after September 30, 1982. The revisionist set up a new unit for the manufacture of glass bangles, etc., and applied for grant of an eligibility certificate in terms of section 4-A of the Act. The certificate was issued to the revisionist vide communication dated June 29, 1984. The exemption for which the eligibility certificate was granted was to be available from December 31, 1982 for a period of five years and one of the conditions was that if the unit stopped the production permanently then the facili .....

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..... nserted by the U.P. Sales Tax (Amendment and Validation) Act, 1979 stood as under: (1) Notwithstanding anything contained in section 3 or section 3-A, the State Government may, if it is of opinion as specified in sub-section (2), by notification declare in respect of any goods that the turnover of sales within the State, by the manufacturer thereof shall, during such period not exceeding five years and in such circumstances and under such conditions, as may be specified, be exempt from sales tax or be liable to tax at such reduced rate as it may fix: Provided that every notification issued under this sub-section shall be deemed to have specified the following conditions, namely (i) that such turnover in an assessment year does not exc .....

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..... ibility certificate granted prior to September 13, 1985 could not be cancelled by the Commissioner. This contention too in my view has no force. Any eligibility certificate which was subsisting, i.e., the period of exemption under which had not expired on September 13, 1985 could be dealt with by the Commissioner under powers conferred on him. There is no warrant for the contention that the power could be exercised only in respect of eligibility certificate granted after that date. 9.. It was then contended that the eligibility certificate was granted to the revisionist in pursuance of a scheme announced by the Government of Uttar Pradesh through a Government Order No. 8244 dated September 30, 1982. It was in pursuance of that scheme that .....

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..... r as well. 10.. It is true that the eligibility certificate to the revisionist was granted in pursuance of the scheme announced through the said Government order which not having been notified in the Official Gazette does not amount to a notification within the meaning of section 4-A of the Act. Therefore, the conditions stated in the proviso to section 4-A(1) could not be read into the Government order which contained a detailed scheme specifying the conditions desired to be fulfilled by a unit claiming to be exempt. Admittedly the said Government order did not provide that in case the unit did not produce goods for more than six months in an assessment year then the exemption will be withdrawn. The eligibility certificate granted to the .....

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..... exemption ranges from three years to seven years, it cannot be expected that during this long period there would be no stoppage of production and the extent of turnover would not fluctuate. Sub-clause (i) of the proviso denies exemption if the turnover in an assessment year exceeds ten crores of rupees. Suppose there is a unit which is entitled to exemption for seven years and fulfilling the object of industrial development the unit progresses well and in the 6th or 7th year the turnover exceeds rupees ten crores. Does it mean that for fulfilling the State s desire for industrial development the unit can be denied exemption for the whole period of seven years simply because its turnover in the 6th or 7th year exceeds the limit. 12.. Simil .....

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..... ithdrawn only in respect of a particular assessment year and not for the entire period for which the eligibility certificate was granted. 13.. In the present case the production remained closed for more than six months at a stretch in the assessment year 1983-84 from August 21, 1983 to March 31, 1984. Therefore, the Commissioner could only amend the eligibility certificate to the effect that the dealer would not get exemption in respect of turnover relating to the assessment year 1983-84. The exemption could be denied even by the assessing officer himself without the eligibility certificate being amended. The grant of an eligibility certificate does not amount to the grant of exemption itself. It is only a pre-condition for consideration .....

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