TMI Blog2016 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed by the said authority in revision and pass such order as he thinks just and proper. Had the department demanded the past dues from the petitioner, for which, the exemption was already granted, perhaps the question of applicability of section 49 and 50 of the Act may arise. However, in the present case, all that the Commissioner did was to withdraw the benefit of adjusting the ascertained sales tax liability against the surviving exemption limit. - Demand confirmed - Decided against the petitioner. - SPECIAL CIVIL APPLICATION NO. 469 of 2016 With SPECIAL CIVIL APPLICATION NO. 470 of 2016 - - - Dated:- 23-6-2016 - MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE PETITIONER : UCHIT N SHETH, ADVOCATE FOR THE RESPONDE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment may require from time to time. (d) An eligible unit shall have to employ minimum 80% of all the posts and 50% of managerial and supervisory posts from local persons as per the guidelines of the State Government. The unit shall be required to execute an undertaking with the appropriate authority to employ minimum 80% of all the posts and 50% of managerial and supervisory posts from local persons. Condition No.17 provided for seizure of the exemption upon the eligible unit contravening any of the conditions. Condition 17 reads as under: 17. If the eligible unit contravenes any of the conditions mentioned above, the exemption under this entry shall cease to operate. Accordingly, the entire amount of tax that would have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petition by impugned order dated 26.02.2015. The Tribunal turned down the petitioner's contention that the discontinuation of the unit being on account of adverse financial conditions, cannot be seen as a breach of condition. It is this judgment of the Tribunal, which is being challenged in this petition. 7. Learned counsel for the petitioner mainly contended that the Commissioner had no power to impose tax in exercise of revisional powers. He submitted that even if there was a breach of the condition of the exemption notification, there had to be assessment in terms of section 49 and 50 of the Sales Tax Act and there could not be any straightaway recovery by a revisional order. In this context, the counsel relied upon the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ously during the eligibility period mentioned in the eligibility certificate. This condition was admittedly not fulfilled. Merely because the petitioner's financial condition turned weak, would not by itself mean that the petitioner is not in breach of this condition. That being the position, in terms of clause 17 of the exemption notification since the eligible unit had contravened the said condition, the exemption would cease to operate. Consequently, the amount of tax payable, but for exemption would have to be paid by the eligible unit to the government treasury. In that view of the matter, the Assessing Officer was not justified in view of the breach of condition by the petitioner to adjust the sale tax liability against the exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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