Judgement

B. P. JEEVAN REDDY, J. :- Leave granted.

2. The only question arising in this appeal, preferred against the judgment of the Allahabad High Court, is whether the respondent-unit qualifies as a "new unit" within the meaning of Explanation (1) to sub-section (2) of Section 4-A of the U. P. Sales Tax Act. The ground upon which the Divisional Level Committee declined to recognise it as a new unit is that a part of the machinery acquired by it for setting up its factory was purchased from M/s. Modi Steels who had purchased the said machinery earlier for their own use. A review application filed by the respondent was rejected by the State Level Committee. The writ petition filed by the respondent has, however, been allowed by the High Court holding that in Case M/s. Modi Steels had not put the said machinery to any use as contended by the respondent, the respondent-unit cannot be denied the eligibility certificate under Section 4A. The Bench purported to follow an earlier decision of the High Court in Amit Plastic Industry, Ghaziabad v. Divisional Level Committee. Merrut, (1994 UPTC 121. The High Court has set aside the orders impugned in the writ petition and remitted t