Baboo Lall Jain, J. - (1.) The petitioner No. 1, Baliaghata Plywood Manufacturing Co. Pvt. Ltd. (hereinafter referred to as "the petitioner"), was incorporated on 14th September, 1979. After installation of machinery and trial production it started manufacturing plywood tea chest and other materials. The petitioner was also registered as a small-scale industrial unit having permanent registration number. The petitioner is also a dealer within the meaning of Section 2(c) of the Bengal Finance (Sales Tax) Act, 1941 (hereinafter referred to as "the said Act").
(2.) The petitioner claimed that the manufacturing unit, being a newly set up small-scale industry, was entitled to claim deduction in gross turnover in respect of the sales of the said new unit under Rule 3(66) of the Bengal Sales Tax Rules, 1941.
(3.) The petitioner No. 1, was granted eligibility certificate, under the said Rule 3(66) for the period from 1st April, 1980 to 31st March, 1981 which in turn entitled him to such deduction. The petitioner No. 1 carried on the said new business during the period from 1st April, 1981 to 1st March, 1982 and incurred loss of Rs. 1,02,639.82. Thereafter during the financial year 1982-83, the said small-scale industrial unit had to be closed and also the capital assets had to be sold. The petitioner No. 1 claims that it was entitled to the renewal of the eligibility certificate for the period from 1st April, 1981 to 31st March, 1982. It applied for such renewal and the application was rejected by an order dated 28th December, 1984 by the Assistant Commissioner of Commercial Taxes (South Circle).;