- (1.) M. C. AGARWAL, J. By this revision petition under section 11 of the U. P. Sales Tax Act, 1948 (hereinafter refereed to as "the Act"), the dealer-revisionist challenges an order dated March 14, 1989 passed by a Full Bench of the Sales Tax Tribunal, Kanpur, whereby it dismissed the dealer's appeal against an order dated February 22, 1988 passed by the Commissioner of Sales Tax cancelling the eligibility certificate granted to the revisionist under section 4-A of the Act.
(2.) I have heard Sri Bharat Ji Agrawal, learned counsel for the revisionist and Sri U. K. Pandey, learned Standing Counsel for the respondent. The Government of Uttar Pradesh vide Government order dated September 30, 1982 announced the scheme for exemption from sales tax in respect of new units starting production after September 30, 1982. The revisionist set up a new unit for the manufacture of glass bangles, etc. , and applied for grant of an eligibility certificate in terms of section 4-A of the Act. The certificate was issued to the revisionist vide communication dated June 29, 1984. The exemption for which the eligibility certificate was granted was to be available from December 31, 1982 for a period of five years and one of the conditions was that if the unit stopped the production permanently then the facility of exemption will be stopped. Since the eligibility certificate was not granted in time the revisionist charged sales tax from its customers and paid the same to the State Government and claimed exemption only for the period October 1, 1984 onwards. Sub-section (3) of section 4-A of the Act authorises the Commissioner to cancel or amend the eligibility certificate if the eligibility certificate was misused or the dealer was not entitled to the facility under this section or is entitled to such facility for a lesser period. This power was conferred on the Commissioner by the amendment made by the U. P. Sales Tax (Amendment and Validation) Act, 1987 with retrospective effect form September 13, 1985. In pursuance of this power the Commissioner of Sales Tax issued notice to the revisionist proposing to cancel the eligibility certificate on various grounds and the eligibility certificate was ultimately cancelled by order dated February 22, 1988.
(3.) THE dealer appealed to the Sales Tax Tribunal. It did not approve several grounds set up by the Commissioner for the cancellation of the eligibility certificate but upheld the cancellation on the ground that the dealer had not manufactured goods during the period August 21, 1983 to July 26, 1984 and, therefore, it had incurred a disqualification and was not entitled to an eligibility certificate. It is this finding of the Tribunal that is challenged in the present revision petition. Section 4-A (1) of the Act as it was inserted by the U. P. Sales Tax (Amendment and Validation) Act, 1979 stood as under : " (1) Notwithstanding anything contained in section 3 or section 3-A, the State Government may, if it is of opinion as specified in sub-section (2), by notification declare in respect of any goods that the turnover of sales within the State, by the manufacturer thereof shall, during such period not exceeding five years and in such circumstances and under such conditions, as may be specified, be exempt from sales tax or be liable to tax at such reduced rate as it may fix : Provided that every notification issued under this sub-section shall be deemed to have specified the following conditions, namely - (i) that such turnover in an assessment year does not exceed ten crores rupees; (ii) that the manufacturer has not discontinued production of such goods for a period exceeding six months at a stretch in any assessment year : Provided further that the State Government may at any time waive the condition referred to in clause (ii) of the preceding proviso if in its opinion such discontinuation for a period exceeding six months was due to the reasons beyond the control of the manufacturer. ";