SHARMA RICE MILL Vs. COMMISSIONER TRADE TAX

JUDGEMENT

(1.) Present revision under Section 11 of UP. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Full Bench of Tribunal dated 24.09.2004 relating to the assessment year.

(2.) Brief facts of the case are that the applicant is partnership firm established a new unit in the manufacture and sales of rice, rice bran and paddy husk. Unit was issued the eligibility certificate on 17.02.1999 under Section 4-A of the Act and the exemption from the payment of tax was granted for ten years for the period 20.06.1996 to 19.06.2006 or 200% of the fixed capital investment of Rs. 18,17,401/- i.e. upto monetary tax limit of Rs. 36,34,802/-, whichever expires earlier. Proceeding under Section 4-A (3) of the Act was initiated by the Commissioner of Trade Tax, U.P., Lucknow and by ex-parte order dated 05.07.2001, the eligibility certificate was cancelled w.e.f. 20.06.1996 on the ground that the machines installed were old machines. Said order was set aside and the matter was remanded back by the Tribunal vide order dated 24.01.2002 with the direction to the Commissioner of Trade Tax to decide the matter afresh, after giving opportunity to the applicant. In compliance to the order, Commissioner of Trade Tax gave a notice dated 22.04.2004 in continuance of the earlier notice dated 14.11.2000. Applicant filed reply dated 25.08.2003 and after considering the reply and giving opportunity of hearing cancelled the eligibility certificate vide order dated 15.03.2004 w.e.f. 20.06.1996 on the ground that unit installed the old machinery and had concealed this fact from the Divisional Level Committee. This inference was drawn on the ground that the dealers of Delhi, from whom purchases were alleged to have been made were not in existence and the dealer of Moradabad, from whom the purchases was made, was trader of old parts. Aggrieved by the order of Commissioner of Trade Tax, applicant filed second appeal before the Tribunal, which has been dismissed by the impugned order.

(3.) Tribunal held as follows: