9911796707
TMI Blog1998 (6) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany enjoyed the benefit of tax holiday under rule 3(66) framed under the Bengal Finance (Sales Tax) Act, 1941. In the last quarter of 1994 the company undertook an expansion programme and ultimately after completing the expansion, commercial production was started in the expanded unit on March 27, 1997. Thereafter the company prayed for eligibility certificate for deferment of tax under section 40 of the West Bengal Sales Tax Act, 1994. That application was rejected by respondent No. 4, Assistant Commissioner of Commercial Taxes, Special Cell, by order dated June 20, 1997. He rejected the prayer on the ground that the requirement of rule 115(2) of the West Bengal Sales Tax Rules, 1995 had not been fulfilled, because earlier the company h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1941. According to Mr. Gupta, in the various provisions of the Act of 1994 and the Rules framed thereunder, namely, the West Bengal Sales Tax Rules, 1995, there are clear indications that a newly set up industrial unit and an expanded portion of existing industrial unit have been treated differently. He has drawn our attention to section 39 which is confined to only newly set up small-scale industrial unit. He has referred to section 40 of the Act of 1994 which refers to both newly set up industrial unit in clause (a) of sub-section (1) as well as the existing industrial units which have been expanded which are referred to in clause (b) of section 40(1). Mr. Gupta has also referred to the Explanation below sub-section (12) of section 40, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1941 was not incorporated in any of the sections of the Act, but was embodied in rule 3(66) and later rule 3(66a) of the Bengal Sales Tax Rules, 1941 framed under the Act of 1941. According to him, section 39 now embodies the same tax holiday in the new Act and it should be interpreted that the Legislature has intended that if a dealer has already enjoyed the benefit of tax holiday whether under the new Act of 1994 or under the old Act of 1941, namely, under its Rules, he should not be eligible for deferment under section 40. 6.. There is no dispute that neither section 39 nor rule 115 of 1995 Rules nor any other provision in 1994 Act and 1995 Rules lays down that benefit of tax holiday enjoyed under rule 3(66) of the Rules of 1941 wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be applied to an existing unit or to an expanded portion of an existing unit and particularly which had started production before May 1, 1995. Had the Legislature really intended that the tax holiday enjoyed under the Rules framed under the Act of 1941 should be a disqualification for availing of the benefit under section 40, it could have easily mentioned that condition either in section 40 or any of the relevant Rules. In the absence of that, it cannot be held that the Legislature intended that section 39 should be interpreted to include rule 3(66) framed under the Act of 1941. There is no express language nor any necessary implication from which the purported legislative intent, contended on behalf of the respondents, can be drawn. 7.. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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