IN THE HIGH COURT OF UTTARANCHAL AT NAINITAL. Writ Petition (M/B) No. 1164 of 2003 (Old W.P.M/B No. 1385 of 1999) Himalayan Institute of Hospital Trust Jolly Grant, Dehradun, Through its Accounts Officer Sri Anand Dhyani, aged about 30 years, son of Sri Y.P.Dhyani. ... Petitioner. Versus 1. State of U.P. through its Secretary Institutional Finance, U.P. Civil Secretariat, Lucknow. 2. The Commissioner, Trade Tax, Lucknow. 3. The Assistant Commissioner, Trade Tax, Dehra Doon. ... Respondents. Sri V.K.Kohli, Sr.Adv., assisted by Sri I.P. Kohli, learned counsel for petitioner. Sri K.P.Upadhyay, Learned Standing Counsel for the State-respondents. Coram: Hon’ble P.C.Verma, J. Hon’ble B.S. Verma, J. Dated August 18, 2006. Heard learned counsel for the rival parties and perused the entire material on record. By means of this writ petition, the petitioner has prayed for a writ of mandamus commanding the Opposite Party No.1, State of U.P. to act in accordance with the amended provision of Section 4(c) of the Trade Tax Act in granting exemption and further to issue a writ, in the nature of certiorari quashing the Annexure Nos. 1 and 2, the Notification dated 1-9-1997 and the order dated 6-1-1999. The record shows that in exercise of the powers vested under clause (c) of Section 4 of the U.P.Trade Tax Act, exemption was granted to the petitioner vide U.P. Shasan Vitta (B) Anubhag-2, Notification No. S.T.-2-675/XI-9(150)/90-U.P. Act-15-48-Order-91 dated April 30, 1991 and the petitioner was exempted the tax payable on the purchase by or, as the case may be, sale to the Himalayan 2 Institute Hospital Trust Jolly Grant (Rishikesh) Dehradun in respect of instruments, apparatus and machines required for use in the hospital and goods required in the construction of the hospital building. This facility was availed by the petitioner. Then, again a Notification No. TT-2614/XI-9(150)/90-U.P.Act-15-48-Order-95 dated march 15, 1995 was issued and the Government, in exercise of the powers under clause )c) of Section 4 of the Uttar Pradesh Trade Tax Act, 1948 read with Section 21 of the General Clauses Act superseded the earlier Notification dated April 30, 1991, referred to in above paragraph and granted exemption to the Himalayan Institute Hospital Trust, Jolly Grant (Rishikesh) Dehradun on the purchase by or, as the case may be, sale to the said Himalayan Institute Hospital Trust, Jolly Grant Dehradun of the goods required in the construction of the hospital building or for use in the hospital. This Notification dated 15-3-1995 has been superseded vide subsequent Notification No. TIF-2-2782/XI-9(150)/90-U.P. Act-15-48-Order-97 Dated September 01, 1997, with effect from 1- 9-1997. Now, there is no exemption on sale or purchase of the goods required for the construction of the hospital building. After the aforesaid Notification was rescinded, the petitioner moved an application for grant of exemption, which is contained in Annexure No. 9 to the writ petition. This application was duly processed and has been rejected by Annexure No.1. The Government had examined the feasibility of granting of exemption and found it not fit to grant exemption and rejected the representation. Section 4(c) of the said Act provides that no tax under this Act shall be payable on the sale or purchase of such goods by such other person or class of persons as the State Government may, by notification, in the Gazette, exempt. The word ‘may’ gives wide discretion to the State Government and the grant of exemption is controlled by the attending circumstances, so that there may not be loss of revenue to the Government and also the exemption is granted 3 by way of incentive. Since the Institute was complete by the time, the application was moved only for extension work, the exemption was sought, therefore, the Government though it a fit case, in which no incentive was required to be given and accordingly refused to grant exemption. In the above facts and circumstances, we do not find any reason to interfere with the impugned order passed by the Government. The Writ Petition is dismissed. No order as to costs. (B.S.Verma, J.) (P.C.Verma, J.) RCP