S G INDUSTRIES Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) PETITIONER No. 1, a partnership-firm engaged in the manufacture of steel tube pipe, pipe fittings, pulleys, oil engine parts, cast iron, etc. , was granted a recognition certificate on December 15, 1976 with effect from April 1, 1976. By impugned notice, annexure 3 to the writ petition, relating the assessment year 1977-78, the petitioners were called upon to show cause why penalty be not levied for having used the raw material procured under the certificate for the purposes of manufacturing of pipe and pipe fittings in violation of the terms of the recognition certificate.

(3.) THE learned Standing Counsel submits that a notice was given by the respondent to amend the recognition certificate on February 9, 1982 which was challenged by the petitioners under another writ petition. Be that as it may, if the recognition certificate is amended, that will be effective prospectively and that will have no bearing for the assessment year 1977-78 and, therefore, we are of the view that no penalty could be imposed on the facts and in the circumstances of the case for the assessment year 1977-78, inasmuch as the raw material was used by the petitioners for manufacturing the pipe and pipe fittings which are inter alia, mentioned in the recognition certificate.