DIVISIONAL LEVEL COMMITTEE Vs. HARSWARUP DRUG UDYOG

JUDGEMENT

(1.) The Divisional Level Committee constituted under Section 4-A of the U.P. Sales Tax Act, 1948 (for short "the Act"), and the State of U.P. are aggrieved by the order of the High Court passed in Civil Misc. Writ Petition No. 485 of 1992 quashing the order of the Committee rejecting an application filed by the respondent for exemption from payment of sales tax under Section 4-A of the Act.

(2.) The order of the Joint Director of Industries rejecting the application of the respondent dated 28-1-1992 shows that the rejection was on the ground that the registration of the lease deed was made on 27-3-1990 after the date of the first sale, namely, 19-5-1989 and, therefore, the lease deed having been registered after the date of the availability of the facility of exemption, the respondent was not entitled to claim the benefit of Section 4-A. The High Court has held that the lease deed having been registered on 27-3-1990, the respondent was entitled to get the exemption with effect from that date. The High Court has not, however, made it clear whether the respondent would get exemption for a period of four years from 27-3-1990.

(3.) Learned counsel for the appellants contends that the respondent not having fulfilled all the conditions prescribed in Section 4-A of the Act for getting the exemption on the date on which the first sale was effected, is not entitled at all to get the exemption for any period whatsoever. According to him, the relevant date for grant of exemption is the date of first sale as contemplated by sub-section (1) of Section 4-A of the Act. According to him, if on that date, all the conditions are not fulfilled and they are fulfilled at a later date, the assessee will not be entitled to get the exemption.