Compounded levy scheme eligibility turned on plant and machinery valuation; professional certificate prevailed over departmental assessment.

Entitlement to the compounded levy scheme turned on whether the investment in plant and machinery fell within the prescribed ceiling. The petitioners supported their valuation with a Chartered Accountant's certificate, prepared in accordance with Accounting Standard 10, showing that the investment was below the limit. The department relied on inspection and records, but produced no contrary expert material to displace the professional certificate. On the record, the conditions of the scheme were satisfied, and the order refusing the benefit was set aside.

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Issues: Whether the petitioners were entitled to the benefit of the compounded levy scheme on the basis of the value of investment in plant and machinery, and whether the order denying such benefit could be sustained.

Analysis: The dispute turned on the valuation of the plant and machinery for the purpose of the scheme. The petitioners relied on a certificate of a Chartered Accountant stating that the investment was below the prescribed ceiling and that the valuation was made in accordance with Accounting Standard 10. The departmental valuation was based on inspection and records, but no contrary expert opinion was produced to displace the professional certificate. Even assuming the later notification applied, the evidence on record showed that the petitioners satisfied the relevant conditions of the scheme.

Conclusion: The petitioners were held entitled to the compounded levy scheme, and the order denying the benefit was set aside.

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