Eligibility certificate depends on proving a newly set up unit, not an expansion of an existing manufacturing unit.

Eligibility for remission under the West Bengal Sales Tax Act, 1994 depended on proving that the manufacturing unit satisfied section 41 read with Explanation (a) to section 40(12), and, where relevant, the deeming provisions for new units. The dealer failed to show that the later project was a newly set up industrial unit: the evidence showed continuous manufacture of the same goods since 1990, the earlier unit had been demolished in 1997, and industrial corporation documents described the project as an expansion with enhanced capacity. The application and certificate materials did not establish first manufacture in West Bengal or a qualifying new unit, so the claim fell outside the statutory category for eligibility certificate.

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Issues: Whether the petitioner's manufacturing unit was a newly set up industrial unit or an expanded portion of an existing industrial unit so as to entitle it to an eligibility certificate and remission of tax under the West Bengal Sales Tax Act, 1994.

Analysis: The statutory scheme required the dealer to establish that the unit satisfied the conditions of section 41 of the West Bengal Sales Tax Act, 1994, read with Explanation (a) to section 40(12), and, where applicable, the provisions relating to deemed new units under sections 42(2) and 43(3). The materials showed that the dealer had manufactured the same goods since 1990, the earlier unit had been demolished in 1997, and the later project was described in the industrial corporation documents as an expansion with enhanced capacity. The application form and the industrial certificate did not clearly support a claim of a newly set up unit, and the later set-up was not shown to be the first manufacture of the goods in West Bengal. On the facts, the demolished unit could not be treated as having an expanded portion, and the claim was not brought within the statutory category for grant of eligibility certificate.

Conclusion: The unit was neither a newly set up industrial unit nor an expanded portion of an existing industrial unit, and the refusal to grant eligibility certificate was sustained.

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