Petition denied for failure to comply with recognition surrender requirements. Sales tax exemption not granted.

The court dismissed the petition, ruling that the petitioner's failure to surrender recognition under section 32 within the specified period rendered it ineligible for sales tax incentives. The denial of the sales tax exemption certificate based on the notification dated 17th August 1982 was upheld, and the petitioner's claim for refund of sales tax paid during the entitled period was rejected. No costs were awarded to either party.

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Issues:
1. Entitlement to sales tax exemption under government resolutions.
2. Denial of sales tax exemption certificate based on notification dated 17th August, 1982.
3. Holding recognition under section 32 of the Act affecting eligibility for sales tax incentives.
4. Petition challenging the resolution dated 17th August, 1982 and order dated 27th August, 1987.

Detailed Analysis:
The petitioner, a manufacturer of aluminium products, claimed entitlement to sales tax incentives under government resolutions dated 22nd December 1977 and 27th August 1980. The petitioner invested in expanding its industrial unit before 1st August 1982 and applied for cash subsidy and eligibility certificates. The eligibility certificate granted sales tax exemption of Rs. 2,36,987 from October 1982 to March 1988. However, the second respondent denied the sales tax exemption citing a government resolution dated 17th August 1982, excluding certain industries. The petitioner sought a direction for the issuance of the exemption certificate and refund of the sales tax paid during the entitled period.

The Assistant Commissioner rejected the petitioner's claim based on two grounds. Firstly, the petitioner was engaged in an industry prohibited by the notification dated 17th August 1982. Secondly, the petitioner held recognition under section 32 of the Act, rendering it ineligible for sales tax incentives. The notification exempted sales by specified manufacturers fulfilling specific conditions, including not holding recognition under section 32 or surrendering it within the prescribed period. As the petitioner did not surrender recognition within the stipulated time, it was rightly denied the exemption certificate, irrespective of the government's authority to withdraw exemptions through the impugned notification.

Ultimately, the court dismissed the petition, ruling that the petitioner's failure to surrender recognition under section 32 within the specified period rendered it ineligible for sales tax incentives. The petition was dismissed, and no costs were awarded to either party.

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