Tax exemption conditions must match the statute: absence of a standard-mark licence could not defeat section 4A eligibility.

Exemption under section 4A of the U.P. Trade Tax Act could not be denied merely because the unit had not obtained a licence for use of the standard mark under the Cement Control Order, 1995. The exemption had to be tested only against the statutory and notified conditions governing section 4A, while the standard-mark licence remained a separate regulatory requirement enforceable under the Control Order. Absence of that licence could attract action under the Control Order, but it was not an express prerequisite for tax exemption. The denial of exemption was therefore unsustainable, and the assessee was entitled to the eligibility certificate and exemption from the date of first sale.

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Issues: Whether exemption under section 4A of the U.P. Trade Tax Act, 1948 could be denied merely because the unit had not obtained the licence for use of standard mark under the Cement Control Order, 1995.

Analysis: The exemption under section 4A has to be examined strictly within the terms of that provision and the notifications issued thereunder. The requirement of obtaining a licence for use of standard mark under section 4(1) of the Cement Control Order, 1995 is a separate regulatory requirement. Non-obtaining of such licence may expose the unit to action under the Control Order, but it is not a condition expressly attached to the grant of exemption under section 4A. The claim for eligibility therefore had to be tested only on the statutory and notified conditions governing the exemption.

Conclusion: The denial of exemption on the ground of absence of the standard mark licence was unsustainable, and the assessee was entitled to the eligibility certificate and exemption from the date of first sale.

Final Conclusion: The revision succeeded, the Tribunal's order was set aside, and the exemption claim was to be granted in accordance with section 4A.

Ratio Decidendi: A tax exemption cannot be refused on the basis of a regulatory condition not expressly made a prerequisite for that exemption under the governing statute or notification.

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