PUNJAB FURNITURES Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) The present revisions Under Section 11 of U.P. Sales Tax Act (hereinafter referred as the Act) are directed against the order of Tribunal dated 30.5.94 for the assessment year 1987-88 and 1988-89.

(2.) Brief facts of the case are that the applicant was a partnership firm engaged in the business of manufacture and sale of furniture registered under the U.P. Sales Tax and under Central Sales Tax The applicant established a new unit for manufacture of furniture and applied for exemption on the turnover of manufactured product. The applicant was issued eligibility certificate Under Section 4A of the Act on 9.4.84 and further by the corrigendum dated 16.4.84 Joint Director of Industries Moradabad Division Moradabad granted exemption for the period of six years from 11.1.83 to 10.1.89. It is alleged that the said eligibility certificate was never modified or amended or cancelled. It appears that on 1.4.86 there was a reconstitution of partnership firm. In view of the eligibility certificate dealer claimed exemption on the manufactured turnover. The assessing authority passed the assessment order for the assessment year 1987-88 on 2.6.88 under Rule 41(7) and for the assessment year 1988-89 on 20.11.9land granted exemption on the manufactured product. Thereafter a proceeding Under Section 21 were initiated by the assessing authority on the ground that the applicant has not filed any application Under Section 4A(2-B) of the Act, which was introduced by Act No. 28/91 w.e.f 12.10.83 on account of change in the constitution and therefore, reconstituted firm was not entitled for exemption for the aforesaid period. Applicant filed the reply which was not accepted and order Under Section 21 were passed by the Sales Tax Officer for both the aforesaid years and the exemption on the turnover of manufactured goods was withdrawn and the tax was assessed on the manufactured goods. Applicant filed two appeals before Asstt. Commissioner(J) Sales Tax which were dismissed Applicant further filed appeals before Tribunal, which were also rejected by the impugned order Tribunal held that when the original assessment order was passed for both the assessment year, exemption was granted on the basis of prevailing legal position but on the introduction of Section 4A(2-B) introduced by Act No. 28/91 with retrospective affect, the condition has not been fulfilled and therefore, tax has been rightly assessed Under Section 21 of the Act

(3.) Heard learned for the parties