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TMI Blog2007 (10) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... VERMA J. This revision under section 11 of the Uttaranchal Trade Tax Act, 1948 (hereinafter referred to as, the Act ) has been filed against the judgment and order dated April 21, 2005 passed by respondent No. 1 in Appeal No. 2 of 2004, by which the appeal filed by the appellant/ revisionist was rejected and the order of the Commissioner, Trade Tax cancelling the eligibility certificate granted to the applicant by the Joint Director, Industries, Pauri Garhwal through office memorandum dated 4384/90 dated December 31, 2002, was affirmed. The facts of the case, in brief, are that the erstwhile manufacturer M/s. R.L. Steels Pvt. Ltd., established a new unit on April 26, 1997 by taking a term loan from U.P. Finance Corporation (UPFC) at Jashodharpur Industrial area, Kotdwara (District Pauri Garhwal). The Divisional Level Committee granted the exemption to the said unit under Notification No. 780 dated March 31, 1995 for a period of twelve years from the date of first sales, i.e., May 15, 1997. Since the unit M/s. R.L. Steels Pvt. Ltd., was closed on May 13, 1998 and the UPFC took possession of the unit as the said unit failed to repay its term loan, the period of exemption was rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Whether respondent No. 1 was justified in passing orders holding that the eligibility certificate contained legal and factual errors and they were competent to negate such certificate, especially when respondent No. 3 was impleaded as a party and especially when respondent No. 1 had allowed the applicant to cross-examine him in person and respondent No. 3 did not present himself to be cross-examined, but represented himself through a subordinate staff not conversant with the decision on eligibility certificate? (3) Whether respondent No. 1 erred in not appreciating the factual position that it was a case of a composite plant and, the applicant was a successor-manufacturer and rightly granted the exemption for the unexpired period as would have been applicable to the former manufacturer and whether respondent No. 1 erred in remanding the matter back to the DLC, when it could itself decide the issue on merits? By way of supplementary affidavit the revisionist has filed the photostat copy of loan agreement-cum-hypothecation deed executed on March 15, 1997 between earlier unit M/s. R.L. Steels Pvt. Ltd. and U.P. Finance Corporation, Kanpur, in the month of April, 2002 betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 3C: Provided also that in computing the unexpired portion of the period, the period during which the production of successor-manufacturer remains closed on account of an order passed by any court or Board for Industrial and Financial Reconstruction or appellate authority or industrial and financial reconstruction shall be excluded. The discontinuation of business was there on account of non-repayment of loan and the possession of the unit first taken over from the manufacturer by UPFC under section 29 of the U.P. State Financial Corporation Act and the revisionist succeeded former manufacturer and applied to the officer competent to grant eligibility certificate under clause (d) of subsection (2) within sixty days of the successor-unit for grant of exemption of unexpired period from the date of start of production by the successormanufacturer which was duly entertained under the first proviso by the competent officer. By virtue of the second proviso the former manufacturer was treated as transferor and the successor-manufacturer was treated as transferee. The grant of exemption certificate for the unexpired portion of period, of which exemption was granted, is sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken expansion, diversification, backward integration or modernisation shall be submitted in Form No. ST-XLVI (in six copies in case of units with a fixed capital investment up to rupees 5 lakhs and in eight copies in case of units with a fixed capital investment exceeding rupees five lakhs), to the General Manager, District Industries Centre of the district in which the unit is situated and in the case of unit situated in any Industrial Development Authority Area to the Area Development Officer (Industry) of the said authority. (b) The General Manager, District Industries Centre of the Area Development Officer (Industry) of the concerned Industrial Development Authority may require the unit to furnish any additional information within 60 days of the receipt of an intimation in this regard. (c) If the application is incomplete or does not contain the required information, the unit may be asked to complete the application or furnish the required information within 60 days of the receipt of an intimation in this regard. If the unit fails to complete the application or furnish the required information or the additional information mentioned in clause (b) within the prescribed tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital investment exceeding Rs. 5 lakhs, shall be issued under the signature of Additional or Joint Director of Industries of the range or, as the case may be, Joint Director or Additional Director (Industries) of the concerned Industrial Development Authority. (4)(1) The application of the units shall be disposed of by the different committees constituted under sub-rule (2) within three months after receiving the report of Trade Tax Department. (2)(a) If such application is not disposed of by the committee within the prescribed period, the committee shall lose the right of disposal of such application. (b) If such application is pending before the District Level Committee or the District Level Industrial Development Authority Committee, it shall be disposed of by the Divisional Level Committee or Divisional Level Industrial Development Authority Committee respectively. (c) If such application is pending before the Divisional Level Committee or the Divisional Level Industrial Development Authority Committee it shall be disposed of by the State Level Committee notwithstanding anything contained in clause (d) of sub-rule (3). The exemption to an individual unit is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to grant eligibility certificate under clause (d) of sub-section (2) of section 4A with obvious reasons, where the eligibility certificate has already been granted on the decision of the committee referred in sub-rule (2) of rule 25 in favour of transferor-company, the officer competent to grant the eligibility certificate shall compute the unexpired portion of period during which the production was closed and after computing that period the certificate shall be issued by the officer competent to grant the eligibility certificate in favour of transferee/successor-manufacturer for the unexpired period from the date of production by the transferee/successor-manufacturer as the eligibility certificate was granted to the transferor-manufacturer in accordance with the procedure prescribed and in such cases the application need not be referred to the committee for considering and disposing of application for grant of eligibility certificate by the committee referred in sub-rule (2) of rule 25 of the Rules. In the second category of cases where the eligibility certificate could be granted to the successor-manufacturer, and was not granted in favour of transferor-manufacturer, the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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