KUMAR FUELS Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) An important question of law as to the interpretation of Section 4-A(2)(d) of the U.P. Sales Tax Act, 1948, is involved in this petition. The Sales Tax Officer issued a show cause notice under Rule 41(5) of the U.P. Sales Tax Rules dated 24th January, 1986. He has observed in the said notice that the petitioner was not a new unit at the time of the commencement of business, had not obtained an institutional loan nor was the factory of the petitioner registered at that time and, as such, the petitioner's unit was not entitled to exemption under Section 4-A of the Act. He, therefore, desired the petitioner to appear on the 28th January, 1986, and satisfy the Sales Tax Officer as to why orders be not passed for assessment of tax against the petitioner.

(2.) The petitioner aggrieved by the above notice has come up to this Court under Article 226 of the Constitution and has prayed for the quashing of the aforesaid notice raising the question that the Sales Tax Officer had no jurisdiction whatsoever to find out whether the petitioner's unit is entitled to exemption under Section 4-A of the Act particularly when the petitioner had obtained an eligibility certificate under Clause (d) of Sub-section (2) of Section 4-A of the Act.

(3.) Since this question is arising frequently in a large number of cases and involves interpretation of a provision of law, we have heard the learned Counsel for the petitioner and the learned Standing Counsel representing the respondents at some length and we propose to dispose of the writ petition at the admission stage finally under the provisions of Chapter XXII of the Rules of the Court.