Prakash Krishna, J. - (1.) The petitioner has challenged the orders dated March 31, 1988 and June 2, 1988 rejecting the petitioner's application for grant of eligibility certificate under Section 4-A of the U.P. Sales Tax (now "Trade Tax") Act, 1948 by the Divisional Level Committee.
(2.) The petitioner is a partnership firm registered under the Partnership Act and it established a new industry to manufacture oil in the year 1983. The petitioner was also carrying on the business of oil-seeds (telhan). The petitioner's application for the grant of eligibility certificate was rejected solely on the ground that the unit besides production of oil is also doing trading business of telhan, vide. annexure 3 to the writ petition. The said order is dated March 16, 1988 communicated to the petitioner by moans of fetter dated March 31, 1988. Thereafter the petitioner filed review application and also placed reliance upon the circular of the Commissioner of Trade Tax, dated February 25, 1988 with respect to the new units established in between October 1, 1982 to March 31, 1990. However, the said review application was also dismissed. The certified copy of the order rejecting the review application was not annexed along with the writ petition. However, this Court on December 7, 1988 directed the Standing Counsel to file the copy of the order passed on the review application, by which the review application was rejected. The said order has been filed as annexure CA-1 to the counter-affidavit sworn by Sri Shyam Sundar Chaurasia filed on behalf of District Industries Centre. A perusal of the same shows that the review application was also rejected on the same ground. Aggrieved against the aforesaid two orders the present writ petition has been filed.
(3.) On behalf of the respondents two counter-affidavits on similar allegations have been filed. It has been stated that the date of commencement of production is March 31, 1983 and the application for the grant of eligibility certificate was rejected in view of the report given by the Deputy Commissioner (A), Sales Tax, Allahabad, by letter No. 1450 dated May 26, 1988. In the said report it was stated that "the unit apart from production and sale of oil and oil cake is also engaged in trade of oil seeds". Oil seeds is used for manufacture of oil and oil cake. As per CST registration certificate the unit is "authorised for trading of oil-seeds". An apprehension was expressed in the said letter that the petitioner can avail double benefit of exemption causing loss to the State exchequer and that the statement of the petitioner that they do not do trading of produced items an'd no tax evasion is involved is incorrect and baseless.;