Prakash Krishna, J. - (1.) The present writ petition arises out of proceedings under section 4-A of the U.P. Trade Tax Act. The petitioner claimed exemption from payment of trade tax for a period of five years but the eligibility certificate was issued for a period of three years. The review application filed by the petitioner has been dismissed by the impugned order dated 17.5.1988 (Annexure 6 to the writ petition).
(2.) The petitioner claimed that it is a new unit within the meaning of section 4- A of the U.P. Trade Tax Act and was registered as a small scale industry on 22.8.1988 by the Directorate of Industries, Ghaziabad vide Annexure 1 to the writ petition. In the said certificate the date of commencement of production was mentioned as February 1981. The petitioner unit has also been registered under the Factories Act w.e.f. 01.02.1983 vide Annexure 2 to the writ petition. On the application claiming exemption under Section 4-A, the District Level Committee made a recommendation for grant of exemption for five years from 05.01.1983 to 04.01.1988 vide annexure 3 to the writ petition. However, the Divisional Level Committee issued the eligibility certificate under 4-A granting exemption from payment of tax for three years only from 5.1.1983 to 4.1.1987. The petitioner thereafter filed a review application which has been dismissed by the impugned order on the ground that the petitioner has purchased machineries etc. worth Rs. 19,730/- after the date of production and as such the total capital investment up to the date of production being less than Rs. 3,00,000/-, it is entitled for exemption only for a period of three years. Against the aforesaid order the present writ petition has been filed claiming a writ, order of direction for modifying the eligibility certificate dated 30.01.1988 (Annexure 4 to the writ petition) issued by the respondent no. 2 for a period of five years instead of three years.
(3.) The respondents no. 2 and 3 have filed separate counter affidavits, although raising similar pleas. It has been stated that as the Divisional Level Committee found the amount of investment below Rs. 3,00,000/-, the petitioner is not entitled for exemption for a period of five years.;