- (1.) We have heard Shri Rakesh Kumar, learned counsel for the petitioner and Shri A.K. Tripathi, standing counsel appears for the State-respondents. By this writ petition the petitioner, as a newly established industrial unit applied for exemption of sales tax on graded basis, with effect from the date of start of production with effect from the date of first sale of its production on December 3, 1986. The competent authority on being satisfied granted the recognition certificate under section 4A of the U.P. Trade Tax Act for exemption from payment of sales tax for the period December 3, 1986 to December 2, 1993 (for seven years).
(2.) One of the conditions for grant of exemption certificate was the requirement to obtain registration under the Factories Act, 1948. In paras 2, 3 and 4 of the writ petition it is stated as follows: 2. That the petitioner has established a new unit for the manufacturing of stone grits. The production has been started on January 31, 1986 and the first sale was made on December 3, 1986. 3. That inasmuch as the number of workers were less than 10, at the time of starting of the production, the petitioner could not apply for registration under the Factories Act inasmuch as in view of section 2(m) of the Indian Factories Act, the registration under the Factories Act is only required, in case the number of workers are more than 10. In case the number of workers in the factory are less than 10, neither there is any obligation to get the registration under the Factories Act nor, the authorities under the Indian Factories Act are granting registration. 4. That when number of workers exceeded more than 10, the petitioner applied for registration under the Factories Act on November 24, 1988 and accordingly the registration under the Factories Act has been granted with effect from November 24, 1988.
(3.) The Divisional Level Committee empowered to consider and recommend for exemption, in its meeting dated March 26, 1992 considering the condition of registration under the Factories Act to be a mandatory condition, and reduced the period of exemption from the date of registration of the unit, as such, i.e., December 3, 1986 to December 2, 1993. Aggrieved the petitioner filed the writ petition with the following prayers: (i) to issue a writ, order or direction, directing respondent No. 1 to modify the eligibility certificate granting effective exemption from the date of first sale. (ii) to issue a writ, order or direction, quashing the assessment orders for the assessment years 1986-87 and 1987-88. (iii) to issue a writ, order or direction, staying the recovery proceedings for the assessment years 1986-87 and 1987-88 and the assessment proceedings for the year 1988-89. (iv) to issue a writ, order or direction which this honourable court may deem fit and proper in the circumstances of the case; and (v) to award the cost of the petition to the petitioner.;