Expanded unit tax remission survives closure of the original unit when eligibility conditions and certificate terms are still met.

An expanded industrial unit retained entitlement to renewal of its eligibility certificate and continued tax remission where the statutory conditions remained satisfied. The legal scheme under the relevant West Bengal sales tax and VAT laws treated remission as attaching to the expanded unit, and no provision showed that closure of the original unit by itself extinguished that benefit. Because the expanded unit continued to function and there was no breach of the certificate terms, refusal of renewal solely on the ground that the original unit had ceased to operate was not justified and the entitlement was upheld.

---

---

Issues: Whether closure of the original industrial unit disentitled the expanded unit from renewal of the eligibility certificate and continued remission of tax.

Analysis: The statutory scheme under the West Bengal Sales Tax Act, 1994, the West Bengal Sales Tax Rules, 1995, the West Bengal Value Added Tax Act, 2003 and the West Bengal Value Added Tax Rules, 2005 treated remission as attaching to the expanded unit so long as the conditions of eligibility and the requirements for renewal were satisfied. No provision was shown to deprive an expanded unit of remission merely because the original unit had closed, so long as the expanded unit continued to function and there was no violation of the terms and conditions of the eligibility certificate. The authority, therefore, could not refuse renewal on the sole ground that the original unit had ceased to operate.

Conclusion: Closure of the original unit did not defeat the expanded unit's entitlement to renewal of the eligibility certificate and remission of tax; the refusal was unlawful and the respondent's entitlement was upheld.

---