S.R.Alam, J. - (1.) This petition under Article 226 of the Constitution is directed against the notice dated May 9, 2001 issued by the Trade Tax Officer, Sector 14, Agra, calling upon the petitioner to appear before him on May 16, 2001 and to file written reply as to why the recognition certificate issued under Sub-section (2), Section 4-B of the U.P. Trade Tax Act, 1948 (hereinafter referred to as "the Act") be not cancelled.
(2.) We have heard Shri Bharat Ji Agarwal, learned Senior Counsel appearing for the petitioner, Mr. Kesarwani, learned Standing Counsel appearing for respondents Nos. 1 to 3 and Dr. R.G. Padia, learned counsel appearing for respondents Nos. 4 and 5.
(3.) It appears that the petitioner is a public limited company incorporated under the Indian Companies Act, 1956 and registered under the U.P. and Central Sales Tax Acts. It entered into a contract with National Highway Authority of India, New Delhi, for the construction of 4/6 lane of national highways of north, south, east and west of the Agra Gwalior section of NH-3 and for laning of 24 kms. to 41 kms. of Agra Bholpur section of NH-3 in the State of U.P. Besides that, work of maintenance and repair of NH-2 U.P.-3 in the State of U.P. was also given. It was also awarded work by the Construction Division, Agra and Mathura for strengthening and widening the roads and maintenance and repairs of certain roads. It applied for grant of recognition certificate under Section 4-B of the Act for the purchase of raw material for manufacture of hot mix material in its hot mix plant. The Trade Tax Officer rejected the request of the petitioner against which an appeal was preferred before the Deputy Commissioner (Appeals), Trade Tax, which was also dismissed vide order dated April 24, 1997. The aggrieved petitioner thereafter preferred Second Appeal No. 75 of 1997 before the Trade Tax Tribunal, Agra. The learned Trade Tax Tribunal, Agra, having heard the parties found that the hot mix material is manufactured by the appellant-petitioner in the hot mix plant from cement, sand, grits, bitumen, etc., for the construction of roads. It is also found that for manufacturing hot mix material recognition certificate is granted to National Highway Construction Company, Mathura, and Oriental Construction Engineers Ltd., Mathura. The learned Tribunal, therefore, allowed the appeal and directed the assessing authority to grant recognition certificate for the purchase of raw material against form 3-B at a concessional rate of tax. Consequently, the Trade Tax Officer/assessing authority issued recognition certificate in favour of the petitioner for the purchase of bitumen, furnace oil, H.S.D. and lubricant. The petitioner thereafter pursuant to the recognition certificate purchased various raw materials against form 3-B. The Commissioner, Trade Tax, U.P., however, issued circular on January 17, 2001 intimating that the purchase of the materials, which are used in the construction of road, cannot be made against form 3-B. It was followed by another circular dated February 23, 2001 to the effect that the recognition certificate issued under Section 4-B of the Act to the dealer with regard to purchase of bitumen chemical compound and grits against form 3-B should be reviewed by the issuing authority. Pursuant to the aforesaid circular the impugned notice dated May 19, 2001 is issued as to why the same should not be cancelled.;