TMI Blog2003 (8) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act, 1994 and the certificate lapsed on September 20, 2000 after five years. In the meanwhile, section 43A was inserted under section 6 by West Bengal Sales Tax (Second Amendment) Ordinance, 1999 and it came into force with the effect from January 1, 2000. By such amendment the benefit given under section 39 and the Rules framed thereunder ceased to apply on and from January 1, 2000 in respect of the dealers who started production on or after January 1, 2000. At the same time, protection was given to the Small-scale Industries (S.S.I.) which already were registered prior to the date of amendment and start production on or before June 30, 2000. The condition relating to production by June 30, 2000 was subsequently omitted with effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is eligible to enjoy the tax holiday for the period of five years from the date of his first sale of the goods on and from April 26, 2002 manufactured in the S. S. I. unit. The order of rejection dated March 25, 2003 passed by the respondent No. 1 is, therefore, illegal and arbitrary and liable to be set aside. The learned State representative submits that the petitioner admittedly failed to start production by June 30, 2000 as provided under the proviso (i) of section 43A of the Act, 1994 though the firm was registered as S.S.I. for five years. In paragraph five of the application, it is admitted that his registration certificate has lapsed after expiry of five years and the petitioner also failed to start production. Therefore, admitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orate of Cottage and Small-scale Industries, Government of West Bengal, on or before the date of coming into force of the West Bengal Sales Tax (Second Amendment) Ordinance, 1999 and start production for the first time on or before the thirtieth day of June, 2000. Therefore, according to the proviso (i) of section 43A, the S.S.I. unit can get benefit under section 39 provided, it starts production for the first time on or before June 30, 2000 on being registered with the Directorate of Cottage and Small-scale Industries before the date of the Ordinance came into force. Admittedly, the petitioner failed to start production on or before June 30, 2000 though it had registration as S.S.I. unit and it started production on April 26, 2002 tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to enable the small-scale industries to generate capital by way of availing the scheme of the statute. Liberal construction of the provisions, therefore, is to be given since those are beneficial in nature. Simply mechanical interpretation of the provisions will frustrate the object and intent of the legislation. Therefore, according to the learned lawyer, though the registration of the unit was made second time subsequent to promulgation of the Ordinance, 1999, the benefit has to be given to the petitioner accepting its registration on and from September 21, 1995. The learned State representative submits that the object of insertion of section 43A of the Act, 1994 is to stop the benefit of exemption from tax liability on and from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edly, the petitioner did not avail of such benefit given under section 43A before omission of the words Start production for the first time on or before the 30th day of June, 2000 by way of subsequent amendment. Now the petitioner wants to say taking advantage of the subsequent amendment of section 43A that the only pre-condition for the S.S.I. unit to get exemption under section 39 is the registration with the Directorate of Cottage and Small-scale Industries. Not only that he further claims that the effect of new registration to be given from September 21, 1995 that is, prior to the Ordinance, 1999 came into force which in our opinion is an absurd and illogical proposition. It cannot, therefore, be justified to hold in the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
