Validity of eligibility certificate cancellation power upheld under sales tax law, including for certificates issued before the amendment.

Section 4-A(3) of the U.P. Sales Tax Act, 1948 authorises the Commissioner to cancel or amend an eligibility certificate where the exemption is misused, conditions of grant are breached, or the unit is otherwise ineligible, including where entitlement is for a shorter period or different date. That power applies to certificates issued before or after the provision's insertion, and may operate from a specified prior date, provided a reasonable opportunity of hearing is given. The Commissioner's role as a member of the grant committee does not prevent exercise of this separate statutory power. The provision was held constitutionally and legally valid, and jurisdiction existed to act against pre-existing certificates if the statutory conditions were met.

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Issues: Whether section 4-A(3) of the U.P. Sales Tax Act, 1948, empowering the Commissioner of Sales Tax to cancel or amend an eligibility certificate on misuse, breach of conditions, or ineligibility, is constitutionally valid and applicable to certificates granted before the insertion of that provision.

Analysis: The provision expressly authorises the Commissioner, by written order, to cancel or amend an eligibility certificate if the exemption has been misused, if the unit has breached the conditions of grant, or if the unit is not entitled to the facility or is entitled to it for a lesser period or from a different date. The power is exercisable in respect of certificates issued before or after the relevant date, and the order may take effect from a specified date, including a date prior to the order, subject to a reasonable opportunity of hearing. The fact that the Commissioner participates as a member of the grant committee does not bar him from exercising the distinct statutory power conferred on him as Commissioner. The provision therefore does not suffer from constitutional or legal infirmity.

Conclusion: Section 4-A(3) is valid, and the Commissioner had jurisdiction to cancel or amend an eligibility certificate issued before the commencement of that sub-section if the statutory conditions for exercise of power were satisfied.

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