- (1.) These appeals by special leave by the State of Haryana raise the common question about the validity of withdrawal of the Eligibility Certificate issued under Rule 28A of the Haryana General Sales Tax Rules 1975 (Rules for short).
(2.) We may first refer to the relevant legal provisions. Sections 13B and 25A of the Haryana Sales Tax Act, 1973 (for short the Act ) enabled the state government, if satisfied that it is necessary and expedient so to do in the interest of industrial development of the state, to exempt from payment of tax, or defer the payment of tax, by such class of industries, for such period, subject to such conditions as may be prescribed. Chapter IV-A of the Rules consisting of Rule 28A dealt with class of industries, period and other conditions for exemption/deferment from payment of tax. The definitions of eligibility certificate, exemption certificate and entitlement certificate in Clauses (j), (k) and (l) of Sub-rule (2) of Rule 28A are extracted below: (j) Eligibility certificate means a certificate granted in form S.T. 72 by the appropriate Screening Committee to an eligible industrial unit for the purpose of grant of exemption/deferment. (k) Exemption certificate means a certificate granted in form S.T.73 by the Deputy Excise and Taxation Commissioner of the District to the eligible industrial unit holding eligibility certificate which entitles the unit to avail of exemption from the payment of sales or purchase tax or both, as the case may be; (l) Entitlement certificate a certificate granted in form S.T. 73 by the Deputy Excise and Taxation Commissioner of the District to the eligible industrial unit holding eligibility certificate which entitles it to get deferment of sales tax. 2.1 Sub-rule (3) gave an option to an eligible industrial unit either to avail benefit of tax exemption or deferment. Sub-rule (4) dealt with quantum and period of tax exemption/deferment. Sub-rule (5) dealt with the procedure for applying and obtaining eligibility certificate. Sub-rule (8) dealt with withdrawal of eligibility certificate. Relevant portions thereof, that is, Clauses (a) of Sub-rule (4), Clauses (a), (b) and (h) of Sub-rule (5) and Clauses (a) and (b) of Sub-rule (8) are extracted below: 4(a). Subject to other provisions of this rule, the benefit of tax exemption or deferment shall be given to an eligible industrial unit holding exemption or entitlement certificate, as the case may be to the extent, for the period, from year to year in various zones from the date of commercial production or from the date of issue of entitlement/exemption certificate as may be opted, as under: Quantum and period of tax exemption/tax deferment: (i) New Industrial Units. JUDGEMENT_243_TLPRE0_2009_1.html
(3.) The first respondent (for short respondent ), a small scale industry, was registered as a dealer under the Act. The respondent made an application dated 14.11.1995 to the General Manager, District Industries Centre, Panipat in the prescribed form (ST-70) for grant of an eligibility certificate and enclosed therewith the following annexures: (1) Application form in prescribed format. (2) Option letter seeking exemption to be given from the date of Commercial Production. (3) Affidavit duly attested by a First Class Magistrate. (4) Chartered Accountant s Certificate regarding Fixed Assets at site. (5) Certificate from Chartered Accountant regarding projected Sales Tax to be exempted for the period of eligibility. (6) Copy of Resolution. (7) Memorandum and Article of Association and list of Directors. (8) Copy of Permanent SSI Registration. (9) Copy of Registration certificate under the Act. The respondent did not produce the NOC/CLU certificate, which was a document to be produced, if the land was an agricultural land (Sl. No. (v) of list of annexures to be produced, as per the prescribed application form). The application was processed and on 21.5.1996, the Lower Level Screening Committee resolved to grant the eligibility certificate to the respondent. In pursuance of it, an eligibility certificate was issued on 12.6.1996 stipulating the period of eligibility as from 1.9.1995 to 31.8.2002 for availing exemption from payment of tax of Rs. 41,94,722/-. The respondent accordingly availed the exemption.;