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TMI Blog2015 (9) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioner has filed this petition against the order dated September 5, 2013 (annexure P/1). Return has been filed by the respondents and as submitted by the counsel for the petitioner that the matter has been covered by the decision of Allahabad High Court, hence, with the consent of the parties, the petition is disposed of finally at motion hearing stage. The petitioner is a company incorporated under the Companies Act. The petitioner was granted exemption initially. Earlier the Assistant Commis sioner, Commercial Tax granted benefit to the petitioner vide order dated November 30, 2005, however, the matter was taken in suo motu revision and a show-cause notice was issued to the petitioner under section 62(3) of the Act that why a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner was eligible to get the benefit of tax exemption in view of the exemption certificate issued in favour of the petitioner by the appropriate Government. The question for consideration before this court is that even the petitioner did not submit C form, whether the petitioner is liable to get exemption from payment of tax within the capex limit in accordance with exemption certificate issued in favour of the petitioner. The Department vide Notification No. A-3-24-94- STV (108) dated October 6, 1994 announced tax exemption policy to encourage investment in backward districts. The petitioner submitted an application for exemption from tax and he was found eligible to get benefit of tax exemption facility from the date of commence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose specified in sub-section (1) or sub-section (2) as may be mentioned in the notification ; (b) that in respect of all sales of goods or sales of such classes of goods as may be specified in the notification, which are made, in the course of inter-State trade or commerce to a registered dealer, by any dealer having his place of business in the State or by any class of such dealers as may be specified in the notification to any person or to such class of persons as may be specified in the notification, no tax under this Act shall be payable or the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) as may be mentioned in the notification." Section 8(4) of the CST Act presc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h certain capex for a period of nine years or on an early period when the exemption limit be achieved on the ground that the petitioner had established industry in a backward area. A Division Bench of the Allahabad High Court in a judgment passed on September 1, 2010 in Civil Misc. Writ Petition No. 1446 of 2006 (Yamaha Motor Escorts Limited v. State of U. P. [2011] 38 VST 116 (All)) and other connected writ petitions has considered the similar question to the effect that whether the assessee is eligible to get adjustment set off of the tax quantified under section 8(1) of the CST Act from the monetary limit of the exemption mentioned in accordance with the eligibility certificate granted to the assessee under section 4A of the U. P. Trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... qua the petitioner, the higher rate of tax payable for non-compliance of the amended provisions of section 8(5) namely non-production of form C/D, cannot be taken to be a ground to deny the set off of such higher rate of tax from the limits prescribed in the eligibility certificate under section 4A of the Trade Tax Act, subject to other conditions, namely, the maximum limit for particular year or period and maximum amount for which such exemption is provided." The court has clearly held that even if the dealer did not submit C form, then in that circumstances also he is eligible to get benefit of set off in accordance with eligibility certificate within the limit of higher rate of tax. We are in agreement with the reasonings assigned by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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