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M/s Amba Steels v. The Commissioner Of Trade Tax, U.P. Lucknow - SALES/TRADE TAX REVISION No. 1160 of 2005  RD-AH 2141 (29 August 2005)
TRADE TAX REVISION NO.1160 OF 2005
M/s Amba Steels, Muzaffarnagar ....Applicant
The Commissioner of Trade Tax, U.P., Lucknow. ....Opp. Party
Hon'ble Rajes Kumar, J.
Present revision under section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 09.06.2005 by which Tribunal has remanded back the matter to the Divisional Level Committee to decide the matter afresh.
Petitioner has established a new unit and claimed exemption under the diversification scheme under section 4-A of the Act. Applicant has claimed the benefit on the fixed capital investment to the extent of Rs.2,32,02,794.79p. However, in the eligibility certificate benefit on the amount of Rs.1,76,86,534/- was only allowed. Therefore, the applicant filed review application stating therein that without any basis claim of Rs.55,16,260.79p. has not been allowed. The review application has been rejected by the Divisional Level Committee vide order dated 29.10.2004. Against which appeal has been filed before the Tribunal. It appears that before the Tribunal, applicant contended that actually the benefit of Rs.60,30,044/- has not been allowed by the Divisional Level Committee. Tribunal on the consideration of entire facts and circumstances of the case remanded back the matter to the Divisional Level Committee to decide the matter afresh.
Heard Sri R.R.Agrawal, learned counsel for the applicant and Sri U.K.Pandey, learned Standing Counsel.
I do not find any error it the order of Tribunal. Perusal of the order passed by Divisional Level Committee on the review application shows that no reason whatsoever has been given for not accepting the claim of the applicant in regard to a sum of Rs.55,16,260/- and therefore, order of the Tribunal is justified in directing the Divisional Level Committee to consider the claim of the applicant afresh.
It may be mentioned that it is unfortunate to say that in the new unit production started on 29.12.2001 and the application for exemption has been given on 28.06.2002 and the exemption application has been decided on 10.11.2003, after lapse of more than a year. Thereafter, the review application was filed on 17.12.2003, which has been decided almost after ten months on 29.10.2004 rejecting the claim without giving any reason. The allowance and rejection of claim of exemption leads serious consequences and, therefore, in my opinion, matter of exemption should be decided expeditiously more fairly and after giving the proper opportunity of hearing, adjudicating the issue by giving the reasons. Divisional Level Committee is therefore, directed to dispose of the review application within a period specified by the Tribunal in its order dated 09.06.2005.
With the aforesaid observations, revision is dismissed.
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