SATISH CHANDRA, J. - (1.) THIS writ petition proceeds on the ground that sub-rule (5) of rule 25-A of the U.P. Sales Tax Rules is ultra vires the rule-making power of the State Government. The Bench hearing the writ petition felt that in view of the decision of a Division Bench in Messrs. Hulas Rai Tulsi Ram Oil Mills v. State of U.P. (Civil Misc. Writ No. 6295 of 1970, decided on 19th May, 1972; since reported at [1974] 33 S.T.C. 47), in which the constitutional validity of this rule was upheld, this case should more properly engage the attention of a Full Bench. That is how the matter has been laid before this Bench.
(2.) HAJI Ismail Noor Mohammad and Company, the petitioner, is a registered partnership firm. It is registered under the U.P. as well as the Central Sales Tax Acts. It carries on the business of manufacturing oils from groundnuts and oil-seeds and sells the oils manufactured by it within the State and also in the course of inter-State trade or commerce. It exports the oils to Nepal, i.e., outside India. Oil-seeds are liable to purchase tax at the rate of 3 per cent under section 3-D of the U.P. Sales Tax Act on the purchases made by the petitioner-firm either from cultivators or from other unregistered dealers.
(3.) SECTION 4-B, U.P. Sales Tax Act, provides for special relief to certain manufacturers of notified goods. The relief is given in the form of concessional rate of purchase tax or exemption from tax, as may be notified by the State Government in respect of individual classes of goods. On 10th February, 1969, the State Government issued a notification notifying oils of all kinds and provide for them a rate of tax at 2 per cent. On 21st March, 1969, the petitioner applied in the prescribed form to the Sales Tax Officer, Kanpur, for the grant of a certificate of recognition under sub-section (2) of section 4-B, Although rule 25-A of the Sales Tax Rules contemplated that the certificate of recognition shall ordinarily be issued within 30 days of the making of the applications, yet the Sales Tax Officer granted the requisite certificate to the petitioner on 5th December, 1969. Sub-rule (5) of rule 25-A, inter alia, provides that the certificate shall take effect from the date of its issue.;