RAJES KUMAR, J. - (1.) PRESENT revision under Section 11 of U.P. Trade Tax Act (hereinafter referred to as 'Act') is directed against the order of Tribunal dated 22nd August, 1998.
(2.) BRIEF facts of the case are that the applicant was engaged in the business of manufacture and sales of Smokeless Fuel and Coal tar. Coal is one of the raw material. Applicant applied for exemption under Section 4 -A of the Act and eligibility certificate was issued on 25th March, 1992 granting exemption on the turnover of manufactured goods w.e.f. 5.9.1989 for the period of five years. Commissioner of Trade Tax issued notice under Section 4 -A (3) of the Act for the cancellation of the eligibility certificate mainly on the ground that at the time of survey dated 10.1.1990 difference in the stock as per stock register and physical verification was found. At the time of aforesaid survey, it was also found that on 9.1.1990 at Naubatpur check post, 12 Forms 31 were passed for 12 trucks of coal, but by the time of survey only 6 trucks were shown by 6.40 P.M. Thus, it has been inferred that the applicant was involved in selling the coal and according to the Commissioner of Trade Tax it amounts to misuse of eligibility certificate. Applicant filed reply stating therein that at the time of survey, the stock was taken by estimate and without physical verification. It was also explained that by the time of survey only six trucks were arrived and rest of the six trucks arrived after the survey and entries of all the 12 trucks were duly made in the books of account. It was submitted that the under -sized coal, which was obtained in the process of manufacturing was not useable in the manufacturing of smokeless fuel and were sold. It was further submitted that merely because the under -sized coal were sold, the inference of misuse of eligibility certificate cannot be drawn Commissioner of Trade Tax. however, did not accept the plea of the applicant and vide order dated 8.1.1997 cancelled the eligibility certificate w.e.f. 10.1.1990 on the ground that the applicant was involved in misusing the eligibility certificate inasmuch as the coal which was raw material, was sold. Being aggrieved by the order of the Commissioner of Trade tax under Section 4 -A (3) of the Act, applicant filed appeal before the Tribunal. Tribunal by the impugned order, confirmed the order passed under Section 4 -A (3) of the Act.
(3.) HEARD learned Counsel for the parties.;