Liberal construction of industrial exemption provisions saved eligibility despite joint ownership and absence of formal partition or lease.

Section 4-A of the U.P. Sales Tax Act was described as an incentive provision requiring liberal construction of the term "owned" in Explanation (1)(c). A unit on land jointly held by partners could not be denied eligibility merely because no formal partition deed or lease deed had been executed, where co-owners filed affidavits disclaiming objection and accepting exclusive occupation by the firm. The material circular and earlier judicial interpretation also had to be considered. On that reasoning, the rejection of the review application was held unsustainable and the matter was remitted for fresh decision in accordance with law.

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Issues: Whether the rejection of the review application seeking an eligibility certificate under section 4-A of the U.P. Sales Tax Act was justified on the grounds that the unit stood on land jointly owned by some partners without partition and that no lease deed had been executed.

Analysis: Section 4-A is an incentive provision intended to promote industrial development and exemption benefits, and its language, particularly the expression "owned" in Explanation (1)(c), had to be construed liberally. The land was jointly held by partners of the firm, and the other co-owners had filed an affidavit disclaiming objection and acknowledging the portion occupied by the unit as belonging exclusively to the concerned partners. In these circumstances, absence of a formal partition deed or lease deed could not by itself defeat the claim, especially when the governing circular and earlier judicial interpretation supported a broad construction of the provision. The impugned order also failed to deal with the relevant circular and prior decision relied upon in review.

Conclusion: The rejection of the review application was unsustainable; the order refusing the claim under section 4-A was quashed and the matter was remitted for fresh decision in accordance with law.

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