The judgment of the Court was delivered by

S. H. A. RAZA, J. - The petitioner has filed the present writ petition challenging the validity of the action of the Chairman, New Okhla Industrial Development Authority, NOIDA Complex, Ghaziabad (Convenor, Divisional Level Committee under section 4-A of the U.P. Sales Tax Act) respondent No. 2 in granting exemption from payment of sales tax to the petitioner for a period of four years instead of six years. The petitioner has also challenged the validity of the order dated April 15, 1988, passed by the Area Development Officer, NOIDA, by means of which, the review application of the petitioner was rejected.

The factual matrix as set out in writ petition in short compass is that the petitioner is a private limited company incorporated under the Indian Companies Act, 1956 having its registered office at N-2 Cannaught Place, New Delhi, while its factory is situate at D-100, Sector-2 NOIDA, District Ghaziabad. The petitioner is registered both under the U.P. as well as the Central Sales Tax Act. The petitioner has taken factory premises including the land on lease and thereafter installed various machineries. It was alleged that it established and expanded its industry with the sole view to get exemption from payment of sales tax for a period of six years, from the date of its first sale in terms of notification dated August 27, 1984, as superseded/amended by notification dated January 29, 1985 and December 26, 1985. The petitioner has made all efforts and has invested huge amounts with the sole purpose of getting exemption from payment of sales tax. It was averred that the petitioner been aware that the petitioner would not get the full benefit of sales tax exemption, then the petitioner would not have established and expanded its factory.

It was averred that the petitioner had fulfilled all the requirement for the grant of eligibility/exemption certificate from payment of sales tax under section 4-A of the U.P. Sales Tax Act, 1948 (hereafter referred to as "the Act"). The petitioner applied for registration with the Director of Industries as a small scale industry. In the said registration certificate, May 23, 1984, was mentioned as the date of the commencement of the production. The petitioner also applied for registration under the Factories Act and the requisite was granted to the petitioner under the Factories Act with effect from April 2, 1984. The petitioner is also registered withe Central excise authorities vide Excise Licence No. L-4 No. 1/37 BB/NOIDA/85 and L-4 No. 1/12/33A/NOIDA/85. The petitioner is also registered under the Employee's State Insurance Act and Employee`s Provident Fund Act.

It was submitted that after completing all the formalities as required under the Act, the petitioner applied for exemption form payment of sales tax in the prescribed pro forms under section 4-A of the Act before the Area Development officer, NOIDA. The petitioner application was considered by the District Level Committee and therefore the case was recommended to the Chairman, NOIDA. The Chairman, NOIDA, respondent No. 2, after considering the petitioner`s application for exempting, on August 31, 1987, granted the eligibility certificate to the petitioner, exempting the petitioner-uint form payment of sales tax for a period of four years with effect from April 21, 1984 to April 20, 1988.

As the petitioner staked his claim for exemption from payment of sales tax for a period of six years instead of four years, he preferred a representation/review application before the Chairman, NOIDA. On April 15, 1988, the petitioner was informed that his review application was rejected on the ground that the investment of the petitioner-unit was below three lacs as on the date of starting production, hence the said unit entitled for exemption only for a period of four years.

It was stated that since the notification dated August 27, 1984, covered all new units established in the State of U.P. be