Eligibility certificate invalidation upheld where a new industrial unit used an existing brand name and revision was properly exercised.

A revisional authority may invalidate an eligibility certificate where the original grant overlooked a mandatory disqualifying condition, and the notification's requirements remain enforceable against the applicant. The tribunal held that the Additional Commissioner could exercise suo motu revision because the grant was made by an authority within the revisional reach of the Act and the governing rule, and the direction from the prescribed authority was sufficient. It also found that use of the trade mark or brand name of an existing unit, supported by cartons, partnership documents and a royalty agreement, disqualified the industrial unit from eligibility. The notice in Form IX and the factual findings were held free from legal infirmity.

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Issues: (i) whether the Additional Commissioner had authority to exercise suo motu revisional power in respect of the eligibility certificate granted by the Assistant Commissioner; (ii) whether the eligibility certificate could be declared invalid because the newly set up industrial unit used the trade mark or brand name of an existing unit; (iii) whether the notice issued in Form IX and the factual findings regarding use of the brand name suffered from legal infirmity.

Issue (i): whether the Additional Commissioner had authority to exercise suo motu revisional power in respect of the eligibility certificate granted by the Assistant Commissioner.

Analysis: The revisional power under the Act extended to orders passed by persons appointed to assist the prescribed authority. Rule 33(3A) enabled the Additional Commissioner to exercise suo motu revision when directed by the prescribed authority, and the office order of the Commissioner was treated as such direction. The grant of an eligibility certificate under the exemption notification was distinct from the Assistant Commissioner's limited power to declare such certificate invalid, and the revisional power remained available where the original grant had been made without considering the relevant notification conditions.

Conclusion: The Additional Commissioner had jurisdiction and authority to revise the grant of the eligibility certificate.

Issue (ii): whether the eligibility certificate could be declared invalid because the newly set up industrial unit used the trade mark or brand name of an existing unit.

Analysis: The relevant notification treated a newly set up industrial unit as one that did not use the trade mark or brand name of an existing unit. The materials on record, including cartons, partnership documents, and the royalty agreement, showed that the applicant used the mark "Banphool" under the authority of the existing concern and paid royalty for such use. The contention that the mark was merely a symbol or design was not accepted, and the prior grant of the certificate under an earlier notification was treated as an error that could not confer entitlement under the later governing notification.

Conclusion: The certificate was validly declared invalid since the applicant used the trade mark or brand name of an existing unit.

Issue (iii): whether the notice issued in Form IX and the factual findings regarding use of the brand name suffered from legal infirmity.

Analysis: Although Form IX referred to the Bengal Finance (Sales Tax) Act, 1941, it was used only as a convenient notice format. The notice sufficiently disclosed the proposed action and did not prejudice the applicant. The factual findings concerning use of the brand name were supported by the evidence and were affirmed by the applicant's concession during argument.

Conclusion: The notice and the factual findings did not suffer from legal infirmity.

Final Conclusion: The challenge to the cancellation of the eligibility certificate failed on all grounds, and the applicant obtained no relief.

Ratio Decidendi: Where the original grant of an eligibility certificate under a tax exemption notification was made without considering a mandatory disqualifying condition, the prescribed authority or a duly directed revisional authority may invalidate the certificate, and use of the trade mark or brand name of an existing unit defeats eligibility under the notification.

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