TaxTMI 
TaxTMI 
2007 (10) TMI 575
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....l Committee granted the exemption to the said unit under Notification No. 780 dated March 31, 1995 for a period of twelve years from the date of first sales, i.e., May 15, 1997. Since the unit M/s. R.L. Steels Pvt. Ltd., was closed on May 13, 1998 and the UPFC took possession of the unit as the said unit failed to repay its term loan, the period of exemption was reckoned from May 15, 1997 to May 13, 1998. The applicant purchased the composite unit comprised of land, building and plant and machineries in auction by UPTFC for a sum of Rs. 142 lacs under section 29 of the State Finance Corporation Act, 1951. The UPFC sold the land and buildings under the sale deed dated September 21, 2002 and the plant and machineries were handed over to the applicant, vide possession memo dated September 4, 2002. The applicant filed an application before the General Manager, District Industries Centre, Kotdwara, under section 4A(2B) read with section 18(1) on November 14, 2002. The Joint Director of Industries, who is the convener of the Divisional Level Committee and the competent authority to issue/ amend the eligibility certificate under rule 25(3)(f), amended the eligibility certificate granted t....
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....in remanding the matter back to the DLC, when it could itself decide the issue on merits? By way of supplementary affidavit the revisionist has filed the photostat copy of loan agreement-cum-hypothecation deed executed on March 15, 1997 between earlier unit M/s. R.L. Steels Pvt. Ltd. and U.P. Finance Corporation, Kanpur, in the month of April, 2002 between Director, M/s. Sumo Steels and UPFC., photostat copy of sale deed dated executed on September 21, 2002 between UPFC and revisionist-Uttaranchal Iron and Ispat Ltd., for the land and building. We have heard the learned counsel for the parties and perused the record. The undisputed facts are that land, plants and machineries were purchased by the revisionist in the auction proceedings held by U.P. Finance Corporation (UPFC) in totality, evidence of which is on record, i.e., the sale deed and document of transfer of possession. These documents clearly show that there was a complete transfer of title and ownership of entire unit. It is also not disputed that the transferor-manufacturer was granted exemption under section 4A from the date of its production for 12 years. The unit was sold and transferred in entirety and the revision....
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....ssormanufacturer which was duly entertained under the first proviso by the competent officer. By virtue of the second proviso the former manufacturer was treated as transferor and the successor-manufacturer was treated as transferee. The grant of exemption certificate for the unexpired portion of period, of which exemption was granted, is subject to sub-section (3) of section 4A of the Act. Sub-section (3) of section 4A reads as under: "(3) Where the Commissioner is of the opinion that the facility of exemption from, or reduction in the rate of tax obtained on the basis of an eligibility certificate referred to in clause (d) of sub-section (2) or on the basis of any eligibility certificate issued under any executive orders of the Government issued before or after September 13, 1985 has been misused in any manner whatsoever or there is any legal or factual error in issuing such eligibility certificate or that the new unit has committed breach of any of the conditions, subject to which the facility of exemption from, or reduction in the rate of tax was granted or that the new unit to which the eligibility certificate has been granted in accordance with the provisions of this....
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....the required information, the unit may be asked to complete the application or furnish the required information within 60 days of the receipt of an intimation in this regard. If the unit fails to complete the application or furnish the required information or the additional information mentioned in clause (b) within the prescribed time, the date on which the application is completed or the information or the additional information is furnished shall be treated as the date of application of such unit. (2) The State Government may constitute the following committees for the disposal of application for grant of eligibility certificate: (1) Secretaries, Committee. (2) State Level Committee. (3) Divisional Level Committee. (4) Divisional Level Industrial Development Authority Committee. (5) District Level Committee. (6) District Level Industrial Development Authority Committee. (3)(a) The application of the units with a fixed capital investment up to Rs. 5 lakhs shall be disposed of by the District Level Committee or, as the case may be, by the District Level Industrial Development Authority Committee. (b) The application of the units having a fixed capital investment exceeding....
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....f such application is pending before the Divisional Level Committee or the Divisional Level Industrial Development Authority Committee it shall be disposed of by the State Level Committee notwithstanding anything contained in clause (d) of sub-rule (3)." The exemption to an individual unit is to be granted under the notification issued by the State Government under sub-section (1) of section 4A specifying in the notification goods manufactured under subsection (2) of section 4A of the Act, if the unit fulfils other conditions for grant of eligibility certificate. An application under form No. ST-XLVI in six copies in case of units with a fixed capital investment up to rupees five lakhs and in eight copies in case of units with a fixed capital investment exceeding rupees five lakhs to the General Manager, District Industries Centre of the district in which the unit is situated and in the case of unit situated in any Industrial Development Authority area to the Area Development Officer (Industry) of the said authority. The said application is to be disposed of by the Committee constituted under sub-rule (2) of rule 25 and eligibility certificate shall be issued under the signature o....