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2019 (4) TMI 1250 - HC - VAT and Sales TaxEligibility certificate - exemption u/s 4-A of the U.P. Trade Tax Act - grant of amended certificate of entitlement pursuant to the provision of Sections 42 of the VAT Act, which enables the continuation of the previous benefit so granted . HELD THAT:- Section 42(3)(a) stipulates that those industrial units which was granted benefit of exemption from deduction of tax in view of the earlier Act or under the Central Sales Tax Act may apply to the Commissioner for issue of certificate of entitlement in prescribed form and in prescribed manner. The said provision of the Act nowhere restrict for any grant of certificate of entitlement to those industrial units already availing the benefit under Section 4-A of the Act nor it narrow down the scope for grant of such certificate by the authority so enumerated in the said provision. It only enable the said industrial unit to apply before such authority for the grant of entitlement certificate which is in form of extension of the earlier certificate so granted under the old Act or said to be a recognition of the earlier certificate by the new Act. In the present case, certificate of entitlement was already granted by the Commissioner to the assessee on 10.11.2008, it was the subsequent exemption which was granted by the DLC and additional limit was increased by ₹ 6,48,78,870/- that the assess applied for amended certificate of entitlement. As, DLC has already forwarded the additional grant to the Commissioner, he could have exercised his power under Sub-section 9 of Section 42, which mandates him to amend the certificate of entitlement, and, in case he does not proceed to do so, the assess can file an application. The provisions of Section 42(3)(a) of the Act has to be read in harmony with sub-section (9) of Section 42 of the Act, as word 'may' occurs in sub Section 3(a) of Section 42 of the Act, while the word 'shall' has been incorporated by the Legislature in sub section (9) of Section 42, meaning thereby that the duty is cast upon the Commissioner to amend certificate of entitlement to those industrial units already having been granted the eligibility certificate under Section 4-A by the provisions of the Trade Tax Act, and also the certificate of entitlement - Thus it is clear that provisions of Sub-section 9 of Section 42 are applicable in the present case, and not Sub-section 3(a) of Section 42. Tribunal had rightly directed the Commissioner to grant amended certificate of entitlement to the respondent-dealer, who is entitled for the same and the findings recorded by the Commissioner Commercial Tax in regard to the delay of 8 years, 2 months and 5 days is not sustainable. The question stands answered in affirmative, i.e. in favor of the assessee and against the revenue.
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