TMI Blog2014 (2) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ed who was directed to consider it in accordance with law - authority passing the order under Section 4-A of the Act and issuing eligibility certificate thereof is vested with power if necessary to amend its order and the consequential eligibility certificate in exercise of its inherent power read with Section 21 of the U.P. General Clauses Act, 1904. Thus, the DLC as well as the Tribunal manifestly erred and failed to exercise jurisdiction vested in them in law for considering the application of the assessee for amending the eligibility certificate. An order refusing to permit addition of new goods in the eligibility certificate which is commonly described as an amendment application, virtually amounts to refusal to grant the eligibilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, on manufacture and sale of colour T.V. sets and computer monitors only. The assessee had not applied for grant of exemption in respect of any other item or 'wired chassis'. It was therefore not included in the eligibility certificate. Subsequently, the assessee realizing that 'wired chassis' which is being manufactured by it for home consumption for manufacturing colour T.V. sets and computer monitors also require open sale to enhance business turnover applied for tax exemption in respect of 'wired chassis' also by moving an application on 16.08.1999 before the DLC. The said application was rejected by D.L.C. on 13.02.2003 and so was the appeal vide order dated 25.09.2003 passed by the Tribunal. The aforesaid two orders have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any new item in the eligibility certificate. The circular is in context with diversification of the unit and not for adding a new item for exemption. In the above factual background and the submission of the parties the following two questions arise in this revision for consideration:- (i) Whether the eligibility certificate issued Under Section 4-A of the Act is liable to be amended by adding a new item? and (ii) Whether rejection of an application for amending the eligibility certificate is amenable to appeal? The object of Section 4-A of the Act is to promote production of goods and the development of an industry in the State or any particular District or part thereof. It has therefore to be considered liberally as has been he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 4-A of the Act is not an order and therefore the eligibility certificate would only be treated as a grant is completely misconceived and is devoid of any substance. Section 10 (2) of the Act provides for an appeal to the Tribunal against the order granting or refusing of an eligibility certificate. It means that the Act itself treats an order passed under Section 4-A granting or refusing eligibility certificate to be an order which is appealable. The issuance of eligibility is a consequence of it. The entire reading of the above circular indicates that the department itself accepts that the eligibility certificate is amenable to amendment and that exemption in tax in respect of a new item can only be availed if the said it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining an application for amending the eligibility certificate, the authorities passing an order under Section 4-A of the Act is vested with inherent power to correct and amend its order and consequentially the eligibility certificate if any issued in pursuance thereof. Rule 25 (3) (c) of the U.P. Trade Tax Act, 1948 provides that where an application submitted under section 4-A of the Act is rejected, such unit may make an application for review to the same committee whereupon the committee after examination of relevant records and after hearing the parties concerned shall decide the same. In other words, the review under Section 25 (3) (c) of the Act is permissible on the rejection of the exemption application and not where it is grante ..... X X X X Extracts X X X X X X X X Extracts X X X X
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