Yearly tax-holiday eligibility must be tested afresh; an earlier breach does not permanently bar later certificate renewal.

Eligibility for a yearly tax-holiday certificate under rule 3(66a) must be assessed afresh for each certificate period, because the rule grants relief only for a limited time and renewal depends on the conditions then existing. An earlier refusal or prior breach does not create a permanent bar to future eligibility if the dealer later rectifies the defect and otherwise satisfies the statutory requirements. Refusal based solely on an earlier collection of sales tax was therefore unsustainable, and the applicant was entitled to fresh consideration for the later period once the rule's conditions were met.

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Issues: Whether refusal of an eligibility certificate for a newly set up small-scale industry could rest solely on an earlier violation of the conditions in rule 3(66a), when the application for the later year otherwise satisfied the rule.

Analysis: Rule 3(66a) of the Bengal Sales Tax Rules, 1941 grants tax relief to newly set up small-scale industries for a limited period, and rule 3(66a)(ii) contemplates a certificate valid for not more than twelve months at a time. The entitlement therefore has to be tested afresh each year, both at the stage of grant and renewal, on the conditions then existing. A prior refusal or earlier infraction does not create a permanent disqualification for all future years if the dealer later rectifies the defect and satisfies the rule.

Conclusion: The refusal based only on the earlier collection of sales tax was unsustainable, and the petitioner was entitled to fresh consideration for the later period if the rule's conditions were fulfilled.

Ratio Decidendi: Entitlement to an eligibility certificate under a yearly tax-holiday scheme must be determined afresh for each certificate period, and an earlier breach does not by itself bar future eligibility once the statutory conditions are subsequently met.

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