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ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 16.1.2013
BEFORE
THE HON'BLE M. CHANDRACHUD, J. THE HON'BLE PRAKASH KRISHNA, J.

Civil Misc. Writ Petition No. 1302 of 1978

M/s Mohan Metal Industries ...Petitioner

Versus

State of U.P. and others ...Respondents

Counsel for the Petitioner:

Sri Bharatji Agarwal Sri R.K. Agarwal

Counsel for the Respondents:

Sri S.P. Kesarwani S.C.

Trade Tax Act- Section 4- A Small scale industry unit having investment of less than Rs. 5,00,000 would be entitled for exemption for five years- respondent to modify the eligibility certificate dated 30.1.1988 accordingly, that is for a period of five years instead of three years till the issuance of modified eligibility certificate for a period of five years, they should not insist on realizing trade tax for the period 5.1.1983 to 4.1.1988.

Held- Para 8

Having regard to the facts and circumstances of the case, the writ petition is allowed and a direction is issued to the respondent no. 2 to modify the eligibility certificate dated 30.1.1968 accordingly that is, for a period of five years instead of three years. The respondents are further directed that till the issuance of modified eligibility certificate for a period of five years they should not insist realizing trade tax for period 05.11.1986 to 04.01.1988.

Case law referred:

1989 U.P.T.C. 88

(Delivered by Hon'ble Prakash Krishna, J.)

1. The present writ petition arises out of proceedings under section 4-A of the U.P. Trade Tax Act. The petitioner claimed exemption from payment of trade tax for a period of five years but the eligibility certificate was issued for a period of three years. The review application filed by the petitioner has been dismissed by the impugned order dated 17.5.1988 (Annexure 6 to the writ petition).

2. The petitioner claimed that it is a new unit within the meaning of section 4-A of the U.P. Trade Tax Act and was registered as a small scale industry on 22.8.1988 by the Directorate of Industries, Ghaziabad vide Annexure 1 to the writ petition. In the said certificate the date of commencement of production was mentioned as February 1981. The petitioner unit has also been registered under the Factories Act w.e.f. 01.02.1983 vide Annexure 2 to the writ petition. On the application claiming exemption under Section 4-A, the District Level Committee made a recommendation for grant of exemption for five years from 05.01.1983 to 04.01.1988 vide annexure 3 to the writ petition. However, the Divisional Level Committee issued the eligibility certificate under 4-A granting exemption from payment of tax for three years only from 5.1.1983 to 4.1.1987. The petitioner thereafter filed a review application which has been dismissed by the impugned order on the ground that the petitioner has purchased machineries etc. worth Rs.19,730/- after the date of production and as such the total capital investment up to the date of production being less than Rs. 5,00,000/-, it is entitled for exemption only for a period of three years.