Reasoned refusal of tax holiday eligibility certificate required; revisional authority cannot add new grounds to sustain rejection.

A refusal of an eligibility certificate for tax holiday benefits was unsustainable where the original authority gave no substantive reasons and recorded no finding on the statutory requirements. The revisional authority could not validate that refusal by introducing fresh grounds not found in the original order. As the application had not been lawfully considered on its merits, the matter was remitted for fresh disposal in accordance with law, subject to costs, failing which the rejection would stand.

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Issues: Whether the rejection of the application for grant of an eligibility certificate could be sustained when the original authority gave no substantive reasons and the revisional authority affirmed it by adding new grounds; and whether the matter should be remitted for fresh disposal under rule 3(66a) of the Bengal Sales Tax Rules, 1941.

Analysis: The rejection order proceeded only on the dealer's absence and presumed lack of interest, without recording any satisfaction on the statutory requirements for grant of the certificate. The revisional authority could not cure this defect by supplying reasons not found in the original order. A refusal affecting the dealer's entitlement to tax holiday benefits required a reasoned and lawful consideration of the application on its merits. In the circumstances, remand was appropriate, coupled with a condition as to costs, so that the application could be decided afresh in accordance with law.

Conclusion: The rejection and the revisional affirmation were unsustainable and were set aside. The application for eligibility certificate was remitted for fresh consideration in accordance with law, subject to deposit of costs, failing which the rejection would stand.

Ratio Decidendi: An order refusing a statutory tax benefit must disclose valid reasons on the basis of the authority's own findings, and a revisional authority cannot sustain such refusal by introducing fresh grounds not recorded in the original order.

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