TMI Blog1999 (9) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the exemption in terms of the eligibility certificate was available to the dealer revisionist. 2. I have heard Sri Bharatji Agrawal, learned Senior Advocate for the revisionist and Sri Surya Prakash, learned Standing Counsel for the respondent. 3. Under Section 4-A of the Act the Government has the power to grant exemption from trade tax if it is of the opinion that it is necessary so to do for increasing the production or for promoting the development of any industry. The conditions subject to which the exemption would be available have to be specified in the notification to be issued for the purpose. In exercise of the said powers the Government of U.P. issued a notification dated 26th December, 1985. The notification stated tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale of such goods. The revisionist was admittedly granted industrial licence for the manufacture of Vanaspati and, therefore by virtue of the clarification contained in the aforesaid circular, it was not granted an eligibility certificate in respect of the bye-products. 5. However, subsequently, on a re-consideration the Government changed its opinion and the Commissioner issued another circular dated 24th April, 1992 in accordance with the Government's decision communicated to him in a letter dated 9th April, 1992. By this circular, copy of which is Annexure-7 to the revision petition, it was stated that the exemption would be available in respect of the main item of production as well as for the bye-products and wastes. After t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is admitted that on 27th March, 1990 spent earth was sold for a sum of ₹ 2,700/-. 7. Section 4-A (3) of the Act confers power on the Commissioner to cancel or amend an eligibility certificate if there is any legal or factual error in issuing such eligibility certificate or if the unit has committed any breach of any of the contentions or if the new unit is not entitled to facility under this section or is entitled to such facility for a lesser period or from a different date. In terms of the notification dated 26m December, 1985 the application for grant of an eligibility certificate for medium and large scale unit has to be forwarded by the Divisional Joint Director of Industries or, as the case may be the Chairman, Noida along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly represented on the Committee, it is anomalous, that a decision of a Committee could be upset by the Commissioner in exercise of powers under Section 4-A (3) simply because some officer subsequently suggests to the Commissioner that probably the Committee made a mistake. It was so held by the in M/s. Mansarovar Bottling Company Limited v. Commissioner of Trade Tax, 1990 U.P.T.C. 864. 8. I have already stated the history of the matter showing that initially the Government was of the view that exemption is not available in respect of the bye-products and wasts products. It was on re-consideration that the view was changed and it was thereafter that the revisionist applied for amendment and the State Level Committee on which the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct or even of waste is also a debatable question. The notification dated 26th December, 1985 grants exemption in respect of any goods manufactured in an industrial unit and provides that the exemption shall be reckoned from the date of first sale if such sales take place not later than six months from the date of starting production or in other cases from the date following the expiration of six months from the date of starting production. A reasonable interpretation would be that the date of first sale would be the date on which the goods manufactured in an industrial unit are sold. Such goods were 'Vanaspati' and not the spent earth that was not intentionally produced and for the production of which a unit was not set up. Thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the dealer and an eligibility certificate was granted after taking conscious decision on the matters involved. Section 4-A (3) of the Act does not constitute the Commissioner as a revising authority. As is evident, in the present case the State Level Committee had taken a conscious decision that the period of exemption and the date of its commencement shall remain the same as mentioned in the eligibility certificate originally granted. There was in my view neither jurisdiction nor justification for interfering with the said decisions particularly after the lapse of about four years. 11. In view of the above discussions, the Commissioner order under Section 4-A (3) was unjustified and illegal and the Tribunal's order upholding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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