TaxTMI 
TaxTMI 
2019 (4) TMI 1250
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....ity on 13.2.2009 ?" 4. The case in nutshell is that respondent-assessee established a new unit, and exemption was granted under Section 4-A of the U.P. Trade Tax Act (hereinafter called as "Trade Tax Act") on 6.3.2000 for a period 19.3.1999 to 18.3.2014. The exemption limit was Rs. 98,27,23,972/-. As the respondent dealer/assessee was availing benefit upto 31.12.2007. From 1.1.2008 provisions of U.P. VAT Act came into force. 5. Section 42 of the VAT Act provided "treatment of industrial units availing exemption or reduction in the rate of tax under erstwhile Act" for which the dealer had to apply for issuance of Certificate of Entitlement. On the basis of certificate issued by the Divisional Level Committee (DLC) under Section 4-A of the Trade Tax Act on 6.3.2000, the Certificate of Entitlement under Section 42 of the Act was granted on 10.11.2008. Subsequently the dealer/assessee made further investment in the unit and had applied for enhancement of exemption limit, as per notification issued by the State Government. Application so filed was allowed by the Additional Director Industries (DLC) on 13.2.2009 and additional limit was increased by Rs. 6,48,78,870/-. After the gra....
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.... in the rate of tax under erstwhile Act. (1).......... (2).......... (3)(a) the industrial unit availing or granted benefit of exemption from, or reduction in the rate of tax under the erstwhile Act or under the Central Sales Tax Act, 1956 on the turnover of sales of manufactured goods or turnover of purchase of any raw material, processing material, consumable stores, fuel other than petrol and diesel, lubricant required for use in manufacture of goods or in the packing of goods manufactured by such industrial unit or both, and (i) whose facility of exemption or reduction in the rate of tax is base on the fixed capital investment as provided under the erstwhile Act or notification issued thereunder; or (ii) an industrial unit purchased from the State Government or any corporation or undertaking owned or controlled by the State Government and to whom exemption or reduction in the rate of tax has been granted under the erstwhile Act, may apply to the Commissioner for issue of the Certificate of Entitlement in the prescribed form and in prescribed manner.] (4)........ (5)......... (6)......... (7)...........
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....y under section 55; (iii) a Joint Commissioner (Check-post), a Joint Commissioner (Enforcement) or a Joint Commissioner (Special Investigation Branch) empowered to exercise powers under sections 45 and 48; (iv) a Joint Commissioner (assessment) posted in a corporate circle empowered to exercise the power of an assessing authority. Rule 3 defines power to create Zone, Region, Range and Circle as under:- 3. Power to create Zone, Region, Range and Circle.- (1) The State Government may by notification in the Gazette- (a) create or abolish the - (i) Zone of an Additional Commissioner; (ii) Region of a Joint Commissioner (Executive), a Joint Commissioner (Appeals); (iii) range of a Deputy Commissioner (Check Post), a Deputy Commissioner (Enforcement) or a Deputy Commissioner (Special Investigation Branch); and notify the circles or part of a circle or sector that are included in such zone, region or range, as the case may be. (b) specify the circles or part of a circle or a sector that are included in the jurisdiction of a member Tribunal. (2)............... (3)............... ....
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....s of publication of this rule: PROVIDED FURTHER that where the amount of exemption or period of exemption of goods mentioned or described in the Certificate of Entitlement changes or varies on account of any order or direction of any competent court or authority or in compliance with any condition of exemption or otherwise, the industrial unit may apply within 60 days from the end of assessment year in which such event has taken place requiring amendment or within 60 days from the date of publication of this rule whichever is later; PROVIDED ALSO that if the Commissioner is satisfied that there is sufficient cause which prevented the dealer to submit the application within the stipulated period, he may condone the delay in filing the application. (2) Before submitting the application under sub-rule (1) a copy of the application along with enclosures, if any, shall be served to the concerned assessing authority and certified copy of such receipt shall be annexed to the application. (3) The assessing authority shall, after examining relevant record and after giving the dealer a reasonable opportunity of being heard if necessary, send to the Commiss....
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....e read in its literal sense and no other interpretation should be allowed. 13. Per contra, Sri Shubham Agarwal, learned counsel for the dealer /assessee submitted that the case of the respondent is not covered under Section 42(3)(a) of the VAT Act, and it is covered under Section 42(9) of the Vat Act, which stipulates that where the amount or the period for exemption or reduction in rate of tax changes on account of any valid reason or otherwise, the Commissioner shall suo moto or on an application of the industrial unit, amend the certificate of entitlement. 14. In the present case, as the DLC had already granted the eligibility certificate on 13.2.2009 whereby additional benefit of Rs. 6,48,78,870/- was granted to the dealer, it was for the Commissioner to suo moto issued the amended certificate of entitlement to the respondent-assessee without waiting for any application. He further submitted that the order of the DLC had attained finality and copy of the same was already forwarded to the Commissioner, so it was only a routine exercise and the Commissioner should have granted amended certificate of entitlement, as no further adjudication was required, and it was just an en....
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....ars or on the land allotted. However, so far as the land allotted in favour of the applicant by the State or State owned Corporation or statutory Corporation is concerned, no period is required to be fixed under the law. What is required is an allotment of land by issuance of a letter of allotment. Execution of a deed of lease may be a condition for grant of allotment but the grant is not subject to the date of lease or the period specified therein. The statutory rule as also the notification point out a clear distinction between a deed of lease which may be obtained from a private person and the letter of allotment granted by the State or statutory Corporation . The reason for making such a distinction is not far to seek. Whereas in the case of the former, a registered deed of lease is required to be executed if it is for a period of more than one year, in the latter it is not. 35. It is not a case where the application was incomplete by itself. It was also not a case where having regard to the provisions of the Act, Rules, Notifications as also the information required to be furnished in terms of paragraph 10 of Form 46, any other or further information was nece....
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....he earlier Act or under the Central Sales Tax Act may apply to the Commissioner for issue of certificate of entitlement in prescribed form and in prescribed manner. The said provision of the Act nowhere restrict for any grant of certificate of entitlement to those industrial units already availing the benefit under Section 4-A of the Act nor it narrow down the scope for grant of such certificate by the authority so enumerated in the said provision. It only enable the said industrial unit to apply before such authority for the grant of entitlement certificate which is in form of extension of the earlier certificate so granted under the old Act or said to be a recognition of the earlier certificate by the new Act. 19. Argument of Sri Agarwal that the case of assessee/dealer is covered under Section 42(9) of the Act has force as sub-Section (9) categorically provides that the amount or the period for exemption or reduction in the rate of tax, the Commissioner shall suo moto or an application of the industrial unit amend the certificate of entitlement. Meaning thereby the duty is cast upon the Commissioner to suo moto exercise his power and grant amended certificate of entitlement, ....
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....s no new unit would be established in the State due to uncertainty in the taxing statute. The Legislature was conscious of the fact, as such the provisions of Section 42 was incorporated so as to bring continuity and harmony between the old Act and the new Act, so that the benefit granted to any industrial unit in the State remains the same. 25. Thus, the argument of the learned standing counsel cannot be accepted to the extent that the Tribunal committed any error in directing for the grant of certificate of entitlement to the assesseedealer rejecting the finding recorded by the Commissioner as far as the delay in filing the appropriate application before him by the dealer. 26. It is not in dispute that the assessee/dealer after the grant of exemption certificate by the DLC on 13.2.2009, immediately applied for the grant of certificate of entitlement before the Joint Commissioner on 25.2.2009, and thereafter an application by the dealer before the Commissioner on 18.4.2017/9.5.2017 cannot be scored off on the ground of placing the same before the wrong forum, as the dealer had approached the Joint Commissioner within time and it was for the Joint Commissioner to take acti....