We have heard Shri Bharat Ji Agrawal assisted by Shri Piyush Agrawal, Shri Nishant Misra and Shri Kunwar Jee Saxena for the petitioners. Shri S. P. Kesarwani appears for the State - respondents.

In all these connected writ petitions, the petitioners have challenged the assessment orders of the trade tax under the U.P. Trade Tax Act, 1948 in so far as the assessing authorities have not allowed adjustment/set-off of the tax quantified under section 8(1) of the Central Sales Tax Act, 1956 from the monetary limit of the exemption mentioned in the eligibility certificate granted to the petitioners under section 4A of the U.P. Trade Tax Act, 1948 for the relevant assessment years. In all these writ petitions the interim orders were passed by this court directing that the benefit of tax exemption granted by notifications dated July 27, 1991, March 31, 1995, July 19, 1996 and February 21, 1997, will continue to be available to the petitioners for the duration contemplated by the notification subject to the terms and conditions mentioned in the notification notwithstanding the withdrawal of those benefits with effect from October 15, 2002 by the State Government, when the Central Sales Tax Act was amended by the Finance Act No. 20 of 2002 on May 30, 2002.

In the Commercial Tax Revision No. 1125 of 2008, Swastik Components Private Limited v. Commissioner, Commercial Tax, U.P., Lucknow, connected with Commercial Tax Revision Nos. 1126 of 2008 and 1127 of 2008 (of the same company) the court was called upon to decide the question as to whether the applicant - dealer, holding eligibility certificate under section 4A of the U.P. Trade Tax Act, 1948 for exemptions to pay Central sales tax for a period of eight years under the notification dated March 31, 1995 from January 17, 1997 to January 16, 2005, on graded basis, will be entitled to the exemptions, after the amendment of the Central Sales Tax Act, vide amendment in section 8(5) by the Finance Act, 20 of 2002, on the sales made to unregistered dealers outside the State of U.P. for which form C/D is not produced.

M/s. Swastik Components Private Ltd., in the aforesaid case, had applied for eligibility certificate under section 4A of the U.P. Trade Tax Act as new manufacturing unit. The certificate provided for exemption from sales tax without furnishing any forms (sales to unregistered dealer outside the State). The exemption was covered by Notification Nos. 780-781 dated March 31, 1995 issued by the State Government in exercise of powers under sub-section (5) of section 8 of the Central Sales Tax Act, which provided for exemption/reduction, in the rate of tax on the inter-State trade and commerce subject to the condition specified therein. The exemption was granted for a maximum amount covered under the eligibility certificate, on credit basis, for different years in accordance with the notifications until the entire amount is exhausted, within the specified period.

The Central Sales Tax Act was amended by the Finance Act No. 20 of 2002 published on May 13, 2002. The amendment to sub-section (5) of section 8, restricted the powers of the State Government to the extent, that on being satisfied, that it was necessary to do so, in public interest, by notification in the Official Gazette and subject to certain conditions as may be specified therein the State Government may direct that no tax would be payable in respect of inter-State as well as by a dealer having his place of business in the State or tax payable to be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) of the Central Sales Tax Act on the condition that the requirements laid down in sub-section (4) of section 8 were fulfilled. The exemption from tax or liability of tax, at a lower rate by a notification under section 8(5) of the Central Sales Tax Act was to be confined only if the sales were made against form C or D.

The Department took a stand that the amendment in the Central Sa