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TMI Blog1993 (4) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... 41. 2.. The two cases are covered by this common judgment. In RN-187 the case of applicant, Sarvopari Steel Pvt. Ltd. is that on the basis of representation made by the Government of West Bengal regarding incentive in the nature of exemption from sales tax, the new small-scale industrial unit was set up by the applicants for manufacture of alloy steel castings including stainless steel ingots and mild steel ingots for sale. The unit started production in January, 1986 and the first date of sale of manufactured product was made on March 14, 1986. Application for eligibility certificate was made under rule 3(66). It was granted on December 10, 1986 with effect from March 14, 1986 up to March 13, 1987 and was renewed for subsequent periods f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... culation of the investment on plant and machinery under rule 3(66). 3.. In RN-188, the case of the applicant No. 1, Refine Special Steel Pvt. Ltd. is on similar lines. Here, the manufacturing activity relates to production of the same goods as in the case of RN-187. Production started in January, 1986 and the first date of sale of manufactured product was made on January 7, 1986. Eligibility certificate was granted on March 25, 1987 with effect from January 7, 1986 to January 6, 1987 and thereafter renewals were granted from January 7, 1987 to January 6, 1988 and from January 7, 1988 to January 6, 1989. Applicant No. 1 was registered as a dealer under the 1941 Act and the Central Act on April 14, 1986. On 1st February, 1991 the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued that the provision is not arbitrary and not violative of article 14. As regards absence of time-limit for exercise of power, he contended that when no time-limit has been prescribed, the power should be exercised within a reasonable time. Mr. Bhattacharjee further contended that in the present case cancellation of eligibility certificate and renewals after a period of four years was unreasonable and the Assistant Commissioner exercised the power merely on the basis of a difference of opinion with his predecessors-in-office who had taken a different view on the same set of facts. According to Mr. Bhattacharjee, there was no concealment or suppression of any facts on the part of the applicants. No new material allegedly came to the no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same, that only two equipments, namely, the furnace and the high frequency changer, were the only (according to them) plant and machinery, all other equipments including transformers, cooling towers, cranes, etc., were shown in the records and books of account and inspected by the authorities at the factories. Thereafter, the Assistant Commissioners who granted eligibility certificate and renewals, decided that those two items were the only plant and machinery and they did not include other items in plant and machinery for the purpose of rule 3(66). After four years of issuance of the eligibility certificate the new Assistant Commissioner took a different view on the same facts and circumstances, none of which was concealed or suppressed at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od and sufficient reasons on the ground of discovery of new materials or facts. 9.. Although the list of items not treated as plant and machinery by the Assistant Commissioners who granted eligibility certificate and renewals is quite long in each of the cases before us, the arguments were confined to mainly three groups of equipments, cranes, water cooling system including cooling towers and electrical installations including all the transformers. We are saying all the transformers , because the Additional Commissioner in his revisional order had considered in favour of the applicants that only one of the transformers in each case, namely, the 2000 KVA transformer should be excluded from plant and machinery. There are in each case three ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of the State Governments. The Government of India circular stated that the cost of extra transformers, etc., which have to be installed as per regulations of State Electricity Boards would be excluded. In the present cases the applicants have produced a letter from the West Bengal State Electricity Board to the effect that the units were asked to instal their own step-down transformers and necessary equipments for utilisation of power from 33 KV line supplied by West Bengal State Electricity Board. In other words, the applicants have shown at the time of hearing that they had to instal all those transformers to obtain current for sundry use and also current of 850 volts and 440 volts or the like for utilisation in the manufacturing unit, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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