Exemption eligibility cannot be re-adjudicated by the taxing officer when the competent industrial authority has already recommended relief.

Where a government exemption scheme requires the Sales Tax Officer to act on the competent industrial authority's recommendation, the officer cannot sit in appeal over that finding or reopen eligibility by fresh inquiry. The authority's role is limited to implementing the recommendation, and any independent re-adjudication of the same issue is beyond jurisdiction. On that basis, the order denying exemption under Section 4-A of the U. P. Sales Tax Act was held without jurisdiction and was quashed in favour of the assessee.

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Issues: Whether the Sales Tax Officer could disregard the Joint Director of Industries' recommendation and independently deny exemption under Section 4-A of the U. P. Sales Tax Act.

Analysis: The petitioner had been found by the competent industrial authority to be a new unit entitled to exemption, and the Government Order governing the scheme required the Sales Tax Officer to act in accordance with that recommendation. The officer had no authority to sit in appeal over, review, or reopen the merits of the finding already recorded by the authorised authority. A fresh enquiry by the Sales Tax Officer into eligibility was therefore beyond jurisdiction.

Conclusion: The impugned order denying exemption was without jurisdiction and liable to be quashed; the issue was decided in favour of the assessee.

Ratio Decidendi: Where a statute or government scheme requires the taxing authority to act on the recommendation or eligibility determination of the competent authority, the taxing authority cannot independently re-adjudicate eligibility or refuse exemption on a fresh examination of the same .

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