1998 (9) TMI 638

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....ity, being respondent No. 1, rejected the claim of the applicant for exemption of sales of poly bags from tax on the basis of eligibility certificate obtained for the relevant period under rule 3(66) of the Bengal Sales Tax Rules, 1941. The poly bags were manufactured in the new industrial unit of the applicant. There is no dispute about this. The eligibility certificate was issued by mentioning only HMHDPE film and without mentioning poly bags. The first eligibility certificate was granted for the period from October 22, 1982 to June 30, 1983. It was renewed from July 1, 1983 to June 30, 1984, and in similar fashion it was renewed every year upto October 21, 1987. An appeal was preferred by the applicant from the order of assessment. While....

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....gs in the application for eligibility certificate on the mistaken notion that bags and films were identical. However, he was also of the opinion that bags were commercial commodities different from polythene films and liners. He also thought that the question of coverage of bags in the certificate was redundant, although conventionally such coverage was given in the form of the certificate. Thereafter, on December 10, 1997, the West Bengal Commercial Taxes Appellate and Revisional Board disposed of the revision application of the applicant and rejected the revision application on the ground that bags were commercial commodities different from polythene films. 3.. Hence this application. Mr. N.K. Kothari, learned advocate for the applicant,....

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.... new unit of the applicant together with other commodities, and actually the very first sale of manufactured product was of poly bags. But there was an omission or mistake on the part of every one to specifically mention poly bags in the various documents including the eligibility certificate. 4.. Mr. Kothari has further submitted that rule 3(66) as it then stood, did not conceive of issuance of eligibility certificate for all types of goods manufactured in the unit. In other words, according to him, once an eligibility certificate was granted under rule 3(66), the dealer was entitled to exemption from tax on sales of all types of goods manufactured in the unit. 5.. Mr. M.C. Mukhopadhyay, learned State Representative appearing for respond....

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....ommercial Taxes who rejected the application for amendment/rectification of eligibility certificate, recognised the fact that the first sale of manufactured product was of poly bags. From paragraphs 1.2 and 1.7 of the scheme submitted by the applicant and approved by the district industrial authorities, it is clear that bags were envisaged as one of the items to be manufactured in the new unit. Although it can be argued that the assessing authority or authorities, who allowed exemption of tax on sales of poly bags for the first three years of the period of eligibility, might have overlooked the fact that bags were different commercial commodities, the fact remains that the said assessing authority or authorities had allowed exemption of tax....