JCL INTERNATIONAL LIMITED Vs. COMMISSIONER, TRADE TAX,

JUDGEMENT

(1.) HEARD Sri Bharat Ji Agarwal, Senior Advocate and Sri Rahul Agarwal for the petitioner and Sri S.P. Kesarwani, learned Standing Counsel for the respondents.

(2.) THE petitioner is challenging the vires of Rule 43(4)(a) of U.P. Trade Tax Rules, 1948 (hereinafter referred to as the 'Rules') and has also sought a writ of certiorari quashing the order dated 19.6.2002 passed by Commissioner, Trade Tax, U.P. Lucknow (respondent No. 1) whereby it has directed the petitioner to pay the entire amount of trade tax for the period of 2.12.1999 to 20.2.2001 in view of discontinuance of business by the petitioner.

(3.) SECTION 4 -A of the U.P. Trade Tax Act 1948 (hereinafter referred to as the 'Act') empowers the State Government to giant certain exemption/concession from payment of tax/reduction in tax to certain industrial units by issuing a notification. The notification was issued on 31.3.1995 granting -exemption from payment of trade tax to certain industrial units which are established as new units or have undergone expansion, modernization etc. after 1.4.1994 and be lore 31.3.2000. Section 8 of the Act provides for payment and recover) of tax and Sub -section 2 thereof provides that the persons who have been found eligible for exemption in view of the notification under Section 4 -A of the Act, if they so opt, in lieu of exemption or concessional rates of tax, they may be allowed deferment of tax subject to such conditions as may be prescribed. For the purpose of Section 8(2 -A) of the Act, Rule 43 has been enacted containing terms and conditions upon which moratorium under Section 8(2 -A) can be provided.