B. Amit Sthalekar, J. - (1.) THIS Trade Tax Revision arises out of the order of the Commercial Tax Tribunal dated 24.5.1999 whereby the Tribunal has partly allowed the appeal of the revisionist holding that he is entitled for exemption for 5 years under Section 4 -A(1) of the U.P. Trade Tax Act, 1948 (the Act) from the date of registration of the sale deed i.e. 26.6.1987 to 22.12.1991.
(2.) BRIEFLY stated, the facts of the case are that the revisionist is engaged in the manufacturing of Diesel Engine, Generating -Sets, Alternators etc. and established a new unit within the meaning of Section 4 -A of the Act. The new unit was established on the land and building situated at 11 -C/864 Naraich, Hathras Road, Agra through a registered agreement to sale dated 20.10.1986 on a payment of Rs. 25,000/ - which was made by cheque no. 373587 dated 17.10.1986 drawn on the Central Bank of India, Agra. The remaining consideration amount of Rs. 2,25,000/ - was to be paid at the time of execution of the sale deed. Under the agreement to sale, the seller -Shri Baijnath Agarwal handed over the vacant possession of the land and building constructed thereon to the revisionist and also executed an affidavit to that effect. On 31.10.1986 the revisionist applied to the General Manager, District Industries Center Agra for provisional registration of the proposed SSI unit and on 1.12.1986 the provisional registration was granted showing the address of the unit as Naraich, Hathras Road, Agra. The new unit commenced trial production on 1.12.1986 and the first sale took place on 23.12.1986 and therefore it is claimed that the revisionist is entitled for exemption from payment of trade tax for a period of 5 years w.e.f. 23.12.1986 to 22.12.1991. The revisionist preferred an application under Section 4 -A of the Act for the grant of eligibility certificate which was initially recommended by the District Level Committee but was subsequently cancelled by the Divisional Level Committee. Aggrieved by the said order the revisionist filed a review application on 3.4.1992 which was rejected on 21.12.1992. The revisionist then filed writ petition no. 29 of 1993 and by order dated 18.7.1995 the matter was remanded for reconsideration by the Divisional Level Committee. The Divisional Level Committee reconsidered the matter and rejected the application of the revisionist for the grant of eligibility certificate by its order dated 19.9.1997. Aggrieved by the said order the revisionist then filed an appeal before the three member Bench of the Tribunal being Appeal No. 133 of 1997. The appeal was partly allowed by the Tribunal by the impugned order dated 24.5.1999 and the order of the appellate authority dated 19.7.1999 was set aside and a direction was issued to the Divisional Level Committee, Agra to issue eligibility certificate to the appellant unit for the grant of tax exemption under Section 4 -A of the Act for the period from 14.8.1987 to 22.12.1991.
(3.) HEARD Shri Pradeep Kumar Agarwal, learned counsel for the revisionist and Shri Sanjeev Shankdhar, learned Addl. Chief Standing Counsel for the opposite party.;