TMI Blog1990 (2) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... 007, and is directed against the order dated July 15, 1988 passed by the Additional Commissioner, Commercial Taxes, West Bengal confirming the order dated April 2, 1987 of the Assistant Commissioner of Commercial Taxes rejecting the grant of eligibility certificate to the firm. 2.. The case of the applicants may be briefly stated as follows: M/s. Kulodaya Udyog is a registered partnership firm carrying on business as manufacturer of bound registers and file bends in its factory at 9, Chaulpatti Road, Calcutta-700 085. The production in the said factory started on April 6, 1986 and the first sale of manufactured goods took place on April 30, 1986. The said factory is a small-scale industrial unit. The applicant is a registered dealer under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough during the relevant period the provisional certificate showed the location of the factory at 71, Jamunalal Bajaj Street. (ii) One paper-cutting machine purchased by the petitioner was not found on the date of inspection made by the Assistant Commissioner, Burabazar Circle. (iii) The petitioner failed to explain the circumstances under which one machine was purchased on April 20, 1984 when the petitioner had no factory. (iv) The unit is not economically viable as the business of the petitioner is intermittent in character depending on availability of orders from a particular organisation. 4.. The Additional Commissioner, however, accepted the explanation and clarification provided by the applicant with regard to items (ii) and ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th office and factory were shown located at 71, Jamunalal Bajaj Street, Calcutta. Thereafter the applicant took a room in 9, Chaulpatti Road on rent at a rental of Rs. 900 per month along with other terms provided in the lease deed executed on April 5, 1986 between the applicant and the landlady and the manufacturing operation was started there. A permanent registration certificate was issued on January 30, 1987 in lieu of the provisional certificate thereby maintaining the continuity of registration with the SSI Directorate and the particulars as obtaining on the date of issue of the permanent certificate were noted therein. The learned advocate for the applicant contended that it was wrong to suggest that the factory at 9, Chaulpatti Road ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le one if it is mainly dependent upon one and only one very uncertain source of purchase orders in respect of its products and runs hardly for 5 months followed by a long period of respite and rest. As against this, the learned advocate for the applicant contended that the unit started business of selling manufactured goods not only since April 30, 1986 but also has been continuing the same regularly even till date and that year-wise sale figures could be produced by him. It has been further contended by him that during 1986-87 certain bulk orders were received but such bulk orders were not received thereafter but the business never came to a stop or became standstill as alleged. 9.. The relevant provision with regard to the economic viab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commercial Taxes, West Bengal [1989] 73 STC 425). 11.. Except the fact that the dealer got certain bulk orders which it subsequently did not receive and that the dealer was depending on orders from a particular organisation, viz., Government of India, there is nothing to show that the unit was originally economically viable and that the dealer did something which affected adversely such economic viability. There is no such study of the earlier economic viability of the unit and its being adversely affected by the action of the dealer subsequently. The receipt of orders from Government of India may be dependent on various factors over which the dealer may not have any control, and it cannot, therefore, be held that the dealer is responsibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rule for grant of eligibility certificate. 13.. Having considered the facts and circumstances of the case we direct that the impugned orders of the Assistant Commissioner and the Additional Commissioner, Commercial Taxes be quashed and the prayer of the applicant for grant of eligibility certificate be considered de novo by the Assistant Commissioner of Commercial Taxes according to law with effect from the date of first sale of manufactured goods after January 30, 1987 from which date the unit could be treated as a newly set up small scale industry in terms of the rule. 14.. The application is thus disposed of on contest without costs. B.C. CHAKRABARTI (Chairman).-I agree. L.N. RAY (Judicial Member).-I agree. Application d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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