1994 (8) TMI 291

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....t is these two orders which are sought to be quashed in this writ petition. A perusal of the order dated January 18, 1990 indicates that the exemption application under section 4-A of the Act was rejected on the premise that old machinery was brought to bear in the unit. The order, however, indicates that the old machinery which is alleged to have been made use of in the unit, was worth Rs. 1,453 only as against the total investment of Rs. 1,04,104 in the machinery installed and used in the unit. There is recorded no finding that the machinery other than the ones mentioned in the order dated January 18, 1990 worth Rs. 1,453, was also old. The question that crops up for consideration is whether the benefit of exemption can be denied merely ....

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.... the context of a law providing for concessional rates of tax for the purpose of encouraging an industrial activity, a liberal construction should be put upon the language of the statute........." Clause (1)(d) of the Explanation to section 4-A of the Act, came up for consideration before a Division Bench of this Court in Amit Plastic Industry v. Divisional Level Committee [1995] 96 STC 538; 1994 UPTC 121, wherein the Division Bench has observed that "a liberal and positive approach should be taken and eligibility certificate should not be denied or cancelled on hypertechnical or narrow considerations". It has further been held by the Division Bench in the abovenoted case as under: "No doubt Explanation (1)(d) states that the unit which s....