Eligibility certificate and sales tax exemption cannot be questioned by assessing authority while the certificate remains valid.

The assessing authority cannot sit in judgment over an operative eligibility certificate or question the validity of exemption granted under section 4-A of the U.P. Sales Tax Act. The settled position applied is that the power to grant exemption and the power to cancel it vest in the State Government, not in sales tax authorities. As the petitioner's eligibility certificate had not been validly cancelled, the assessing authority lacked jurisdiction to reassess or disregard the exemption. The operative effect is that the exemption remains effective until lawfully withdrawn by the competent authority.

---

---

Issues: Whether the assessing authority could sit in judgment over the grant of an eligibility certificate and the validity of exemption under section 4-A of the U.P. Sales Tax Act.

Analysis: The eligibility certificate granted to the petitioner had not been validly cancelled. The Court applied the settled principle that the power to grant exemption and the power to cancel it vest in the State Government, and that the sales tax authorities have no authority to reassess or question the grant of exemption once the certificate remains operative.

Conclusion: The assessing authority had no jurisdiction to question the eligibility certificate or to sit in judgment over the grant of exemption in favour of the petitioner.

---