NARSINGHOILMILLS Vs. COMMISSIONER OF COMMERCIAL TAXES PATNA

JUDGEMENT

(1.) The present reference arising out of an order passedby this Court under Section 33 (2) of the Bihar Sales Tax Act, 1959, (hereinafter to be referred to at the Act only) involves the following questions of law :

(2.) The relevant facts for the present purpose may be set out as follows : The assessee has set up a small scale industries, which has commenced its production on 4-4-1969. On 2-4-1970, it filed an application before the Industries Department of the Government of Bihar for grant of a registration certificate, which was granted en 10-7-1970. The assessee claimed exemption of sales tax under the Act with effect from the date of filing of the application i.e. 2-4-1970 in accordance with the notification of the State Government bearing No. STGL-E 1013/69-9924 F. T. dated 19-9-1969. But the Tribunal tool the view that the asscssee is entitled to exemption as claimed from the date of actual grant of certificate of registration and not from the date of filing of the application by the ftssesseo.

(3.) Shri K. N. Jain appearing for the assessee has submitted that the asseisee is entitled to the benefit of ihe notification as promised and ensured therein to the small-scale industries, which has been issued in consonacce with the Government policy to accelerate the pace of industrialisation in the State and the intention of law-makers and the above all the object behind it can not be defeated because of inactions and casualness on the part of the executing authorities. His submission is that once an application is filed which is otherwise in order, then whenever the registration certificate is granted in pursuance thereof, it should be deemed to have become effective from the date when it was applied for. On the other hand learned counsel for the other side has submitted that the exemption is a privilege and not a right and, therefore, the claim of exemption can be based only on a strict compliance of the statutory provisions.