The court clarified the applicability of exemption eligibility and the limitations of retrospective provisions under the Sales Tax Act.

( 1 ) THE present revisions Under Section 11 of U. P. Sales Tax Act (hereinafter referred as the Act)are directed against the order of Tribunal dated 30. 5. 94 for the assessment year 1987-88 and 1988-89.

( 2 ) BRIEF facts of the case are that the applicant was a partnership firm engaged in the business of manufacture and sale of furniture registered under the U. P. Sales Tax and under Central Sales tax The applicant established a new unit for manufacture of furniture and applied for exemption on the turnover of manufactured product. The applicant was issued eligibility certificate Under section 4a of the Act on 9. 4. 84 and further by the corrigendum dated 16. 4. 84 Joint Director of industries Moradabad Division Moradabad granted exemption for the period of six years from 11. 1. 83 to 10. 1. 89. It is alleged that the said eligibility certificate was never modified or amended or cancelled. It appears that on 1. 4. 86 there was a reconstitution of partnership firm. In view of the eligibility certificate dealer claimed exemption on the manufactured turnover. The assessing authority passed the assessment order for the assessment year 1987-88 on 2. 6. 88 under rule 41 (7) and for the assessment year 1988-89 on 20. 11. 9land granted exemption on the manufactured product. Thereafter a proceeding Under Section 21 were initiated by the assessing authority on the ground that the applicant has not filed any application Under Section 4a (2-B) of the Act, which was introduced by Act No. 28/91 w. e. f 12. 10. 83 on account of change in the constitution and therefore, reconstituted firm was not entitled for exemption for the aforesaid period. Applicant filed the reply which was not accepted and order Under Section 21 were passed by the Sales Tax Officer for both the aforesaid years and the exemption on the turnover of manufactured goods was withdrawn and the tax was assessed on the manufactured goods. Applicant filed two appeals before Asstt. Commissioner (J) Sales Tax which were dismissed applicant further filed appeals before Tribunal, which were also rejected by the impugned order tribunal held that when the original assessment order was passed for both the assessment year, exemption was granted on the basis of prevailing legal position but on the introduction of section 4a (2-B) introduced by Act No. 28/91 with retrospective affect, the condition has not been fulfilled and therefore, tax has been rightly assessed Under Section 21 of the Act

( 3 ) HEARD learned for the parties

( 4 ) LEARNED Counsel for the applicant submitted that Tribunal and authorities below have erred in levying the tax on the turnover of manufactured product in respect of which unit was holding eligibility certificate Under Section 4a of the Act for the period of six years from 11. 1. 83 to 10. 1. 89. He submitted that the said eligibility certificate was neither cancelled nor modified and therefore, it was not open to the assessing authority to sit over the eligibility certificate He further submitted that the exemption was granted to the unit and not to any partnership firm; therefore, the exemption could not be withdrawn on account of reconstitution of partnership firm. In support of its contention he relied upon the decision of this Court in the case of CST v. U. P. Leather Board Agra reported in 1980 UPTC 287, CST v. Goodluck Rubber and Allied industries, Lucknow reported in 1983 UPTC 909, 1986 UPTC 305 CST v. General engineering Corporation 1987 UPTC. 1358 Jagat Machinery Manufacturers Pvt. Ltd. v. State of U. P. 2000 UPTC 383 Anil Kumar Ramesh Chandra Glass Works, Firozabad and anr. v. State of U. P. and Anr. He further stated that Sub-section 4a (2b) has been added for the first time by Act No. 28/91 with retrospective affect from 12. 10. 83 though the said provision is deemed to be available in the year under consideration on account of its retrospectivity but in view of the fact that the period of exemption has been expired on 10. 1. 89 bef