Eligibility certificate cancellation upheld where uncontroverted survey evidence showed the unit had remained closed beyond the relevant period.

Cancellation of an eligibility certificate under section 4A(3) of the U.P. Trade Tax Act was upheld where the dealer failed to rebut the authority's repeated opportunities to produce evidence. The survey report showing stoppage of production from April 1987 was treated as reliable and uncontroverted material, and the finding that the new unit had remained closed for more than six months was therefore justified. The dealer's objection that cancellation was barred after expiry was rejected in light of the retrospective amendment noted in the order. On the evidence, the challenge failed.

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Issues: Whether the cancellation of the eligibility certificate under section 4A(3) of the U.P. Trade Tax Act, 1948 was justified on the ground that the new unit had remained closed for more than six months and the dealer had failed to adduce any contrary material.

Analysis: The authority repeatedly afforded the dealer opportunity to substantiate its defence, but no material was produced despite several adjournments. In the absence of any contrary evidence, the survey report showing stoppage of production from April 1987 was treated as reliable evidence. The dealer's plea that the certificate could not be cancelled after expiry was rejected in view of the retrospective amendment noticed in the impugned order. Since the question whether the unit had remained closed for the relevant period depended on evidence, and no rebuttal was furnished, the finding recorded on the basis of the uncontroverted survey report was held to be legal and justified.

Conclusion: The cancellation of the eligibility certificate was upheld and the dealer's challenge failed.

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