SHILPA KNITWEARS Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) This writ petition has been filed for a writ of certiorari to quash the impugned order dated May 10, 1994 (annexure 9 to the petition), and for modification of the order dated September 7, 1992 (annexure 3 to the petition) in so far as it relates to the curtailment of the exemption under Section 4-A of U.P. Trade Tax Act, 1948 granted for five years (from March 30, 1990 to March 29, 1995). The petitioner has also prayed for a mandamus directing the respondent No. 2, the Divisional Level Committee, Kanpur, to grant exemption under Section 4-A for five years with effect from the date of the first sale, i.e., (March 30, 1990) and restraining the respondents from realising trade tax from the petitioner for the assessment years 1991-92 to 1994-95.

(2.) Heard learned Counsel for the parties. The petitioner established a new industrial unit for the manufacture of hosiery, vests, underwear and socks. Since it fulfilled all the conditions required for grant of exemption under Section 4-A of the U.P. Trade Tax Act in accordance with the notification dated December 26, 1985, hence, an eligibility certificate under Section 4-A was issued on July 7, 1992 (vide annexure 3 the writ petition) granting exemption for a period of five years from March 30, 1990 which was the date of the first sale.

(3.) However, a note was put in the said eligibility certificate that since the petitioner had misused the exemption hence the actual exemption shall be from March 30, 1990 to July 10, 1991 the date of the alleged misuse.