H M INDUSTRIES Vs. SALES TAX OFFICER

JUDGEMENT

(1.) This writ petition has been filed for a writ of ceritorari quashing the order dated January 17, 1987 (anncxure 3 to the writ petition) by which the petitioners' application under Section 4-A of the U.P. Trade Tax Act, 1948 has been rejected and the order dated October 24, 1990 (annexure G to the writ petition) by which the review petition has also been rejected. The petitioners have prayed for a mandamus to be issued to respondent No. 2 to issue eligibility certificate to the petitioners under Section 4-A.

(2.) Heard learned counsel for the parties.

(3.) The petitioner No. 1 is a proprietorship firm and petitioner No. 2 is its proprietor. It established a new unit with new machinery on a plot of land at A-62 in Sector VIII, Noida, for the establishment of its factory. The Director of Industries, U.P., granted it, provisional registration on October 19, 1983 for manufacture of machinery parts and auto parts. The petitioner-firm was registered under the U.P. Sales Tax Act on July 2, 1984 with effect from April 19, 1984. The petitioner-firm took a loan of Rs. 4 lacs from the U.P. Financial Corporation for the establishment of the factory. The petitioner applied for exemption under Section 4-A of the U.P. Trade Tax Act for a period of six years. On this application an enquiry was held by the Sales Tax Officer on February 3, 1987. A true copy of the enquiry report is annexure 1.