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2019 (9) TMI 573 - HC - VAT and Sales TaxAmendment of Eligibility Certificate - Section 4-A(3) of U.P. Trade Tax Act, 1948 - whether the exemption granted to the assessee by the Divisional Level Committee under the Eligibility Certificate No.4324 dated 26.11.1998, as amended by Eligibility Certificate No.1596 dated 4.12.2003, could have been denied by the Commissioner in exercise of its power under Section 4-A(3) of the Act, when there was no allegation of any misuse of that Eligibility Certificate? HELD THAT:- In the instant case, it is wholly debatable whether the assessee was entitled to exemption on the investment made on dyes and moulds, merely because such dyes and moulds had been given out to job workers who used the same to manufacture the components that came to be used in the manufacture of the end product by the assessee, namely colour television sets. It appears to be debatable as the revenue could not point out any specific provision, either in the Act or under the exemption notification, as may dis-entitle a new unit from exemption on the value of such dyes and moulds used by job workers to manufacture component parts for the new unit. Section 4-A of the Act continuing to exist and similar nature and purpose of the notified schemes of exemption, it appears to be prima-facie permissible in law for a 'new unit' to be entitled to avail exemption, though some part of the manufacturing activity may have been got done on a job work basis. In absence of any disabling clause, the investment made to obtain manufacture of components on job work basis may remain entitled to exemption. On the date of issuance of the eligibility certificate, the value of the machinery had clearly not been written off. That is not even the allegation of the revenue. The only conclusion that is being drawn in the present proceedings is that there was no rectifiable mistake, either factual or legal, with respect to the exemption granted to the assessee. The Divisional Level Committee having examined the facts and having granted the eligibility certificate, the same could not be overcome and/or defeated by the Commissioner by assuming power and jurisdiction under section 4-A(3) of the Act - Revision allowed - decided in favour of the assessee and against the revenue.
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