COMMISSIONER OF SALES TAX Vs. INDUSTRIAL COAL ENTERPRISES

JUDGEMENT

(1.) THE decision in this case depends upon the construction of the relevant provisions of the U. P. Sales Tax Act, 1948 (hereinafter referred to as the 'Act') and the Government Notification issued thereunder granting exemption from sales tax of certain goods for specified period. Section 4-A is the Section with which we are concerned and for the purpose of this case the Section as it stood at the relevant time reads as follows :

(2.) THE relevant Notification prevalent at that time was in the following terms :

(3.) AGGRIEVED by the said order, the respondent filed a review application dated 16-4-1990 which was rejected by order dated 7-7-1990. The said order was challenged by the respondent in a writ petition before the High Court of Judicature of Allahabad. The High Court by its judgment dated 25-11-1992 allowed the writ petition and quashed the impugned order. The concerned authority was directed to modify the eligibility certificate issued to the respondent as one for a period of four years from 9-8-1985. The reasoning of the High Court is that the relevant date for fulfilling the conditions prescribed for grant of exemption is the date from which the unit became eligible in the first instance for such exemption and in this case admittedly it was 9-8-1985. The High Court held that in this case the investment having increased to an amount more than Rs. 3 lakhs merely because of the shifting of the unit from one place to another, it would not disentitle the respondent to have the benefit of exemption continuously for a period of four years from 9-8-1985. The High court arrived at that conclusion by construing the provisions of Section 4-A of the Act quoted earlier. The Commissioner of Sales Tax has preferred this appeal by Special Leave.