Trade tax exemption depends on strict compliance, and late term-loan application defeats relief under the applicable notification.

Exemption from trade tax under section 4A of the U.P. Trade Tax Act depends on strict compliance with the applicable notification conditions. The unit's industrial registration was accepted, and the omission of paint from the original registration did not by itself defeat eligibility, but the decisive requirement was timely application for a term loan within the prescribed cut-off date. Because the relevant term-loan application was made after that date, the claimant failed to satisfy a mandatory condition. In exemption matters, the burden remains on the claimant to prove full compliance, and non-fulfilment of any mandatory requirement disentitles the claimant from relief.

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Issues: Whether the revisionist was entitled to exemption from trade tax under section 4A of the U.P. Trade Tax Act, 1948 on the basis of the relevant notifications, particularly in view of the requirements regarding term loan application, industrial registration and the cut-off date.

Analysis: The claim for exemption depended upon strict fulfilment of the conditions prescribed by section 4A of the U.P. Trade Tax Act, 1948 and the applicable notifications. The unit commenced production and first sale before the later notification, but the earlier notification was treated as the relevant one. On the facts found, the unit had been registered with the Industries Department, and the absence of paint in the original registration did not defeat eligibility. However, the decisive requirement was that the unit should have applied for a term loan within the stipulated time. The record showed that the company's relevant term-loan application was made after the prescribed cut-off date. In exemption matters, the burden lies on the claimant to prove strict compliance, and any failure to satisfy a mandatory condition disentitles the claimant from relief.

Conclusion: The exemption was not available because the mandatory condition relating to application for term loan was not fulfilled within time. The refusal of exemption was upheld.

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