TMI Blog1989 (12) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... Machinery was purchased in July, 1984 and production commenced in October, 1984. First sale was made in February 1985. Registration under the Factories Act was obtained in September, 1987. Since the petitioner satisfied the norms it was granted eligibility certificate in March, 1988, from the date of production, that is, October 17, 1984 for a period of five years ending October 16, 1989. But the actual exemption was confined from September, 1987 to October 16, 1989 as the unit was registered under the Factories Act in September, 1987. Was this permissible? Answer has to be in negative. Neither section 4A nor notification issued under it, clothes the authority with such power. Eligibility certificate is required to be granted to a unit i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s but this basic concept of providing incentive for production remained unaltered. In 1984 the entire section was substituted by Act 22 of 1984, and in addition to incentive for increasing production the State Government was empowered, if in the opinion, it was necessary so to do for promotingthe development of industry in the State generally or in any districts or part of district in particular, to declare by notification that the turnover of such manufacturer shall be exempt from payment of tax. The provision was made, obviously, to encourage industrialisation in backward areas as is clear from specification of district or part thereof in the notification issued by Government for location of the unit. This being the purpose and objective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have been framed under section 24 of the Act which empowers State Government to frame rules on all matters expressly required or allowed by the Act to be prescribed. Rather recourse has been taken to specify the procedure in notifications issued from time to time. Distinction between rules framed in exercise of power conferred by the statute and notifications issued within limits permitted by the Act are well established and do not need any discussion. Nor it appears necessary to dilate on issue that a notification or even rule cannot go beyond the Act itself, although it was vehemently submitted and not without substance that the notification issued in 1984 or even thereafter defining industrial unit differently than new unit in sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, specifying the authority before whom it should be made and the final authority which shall grant the certificate. While providing for procedure the notification added an Explanation like the one existing from before. For convenience whole of the notification issued on August 27, 1984 is reproduced below: WHEREAS the State Government is of the opinion that it is necessary so to do for promoting the development of industry in the State generally and in certain districts and parts of districts in particular: NOW, THEREFORE, in exercise of the powers under section 4A of the Uttar Pradesh Sales Tax Act, 1948 (U.P. Act No. XV of 1948), the Governor is pleased to declare that in respect of any goods manufactured in an industrial unit e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Textile Commissioner or the Director, Sugar or the Director General of Technical Development or the Government of India, and- (a) registered under the Indian Factories Act, 1948 or established after obtaining a term loan from the U.P. Financial Corporation or Scheduled Commercial Bank in the case of units with a capital investment not exceeding three lakh rupees, or (b) registered under the Indian Factories Act, 1948 or having applied for registration under the said Act and deposited the required fee for the purpose, in the case of units other than those referred to above; (2) 'date of starting production' and 'new unit' shall have the same meaning as assigned to them in the Explanation to section 4A of the U ..... X X X X Extracts X X X X X X X X Extracts X X X X
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