- (1.) This petition seeks quashing of order dated June 7, 2007, annexure P17, passed by the Higher Level Screening Committee (HSSC) of the State of Haryana constituted under the Haryana General Sales Tax Rules, 1975 (for short, "the Rules"). By the said order, benefit of tax concession of Rs. 888.15 lacs given to the petitioner under rule 28C of the Rules has been cancelled on the ground that the petitioner did not have the requisite registration with the Department of industries, which was a condition precedent for grant of benefit by treating the unit to be "unit in pipeline". According to the scheme of the Rules, the industrial units located in specified areas during the specified period, were entitled to concession of deferment of sales tax and conversion thereof to capital subsidy.
(2.) The case of the petitioner is that its unit was set up in Gurgaon district in collaboration with foreign collaborators for manufacture of automobile components and was registered with the assessing authorities of the Sales Tax Department on March 23, 2000. The Secretariat of Industrial Assistance (SLA), Department of Industries, Government of India, granted the necessary approval for setting up the unit with foreign collaboration initially at Delhi and later at Gurgaon. The plot in District Gurgaon was allotted to the petitioner on December 8, 1999 and commercial production commenced from September 29, 2000. The Industrial Entrepreneurial Memorandum (IEM) was filed with the Secretariat of Industrial Assistance on August 4, 2000. Since under the Rules, the "units in pipeline" eligible for tax concession were defined as units which came into commercial production after the Rules but were in the process of being set up during November 15, 1999 and April 30, 2000, subject to fulfilment of certain conditions including registration as on April 30, 2000, the petitioner claimed to be eligible. It made necessary application on February 11, 2002 and December 6, 2004. The application of the petitioner was granted by the HLSC as per its decision dated December 6, 2004. The petitioner was held entitled to sales tax concession to the extent of Rs. 885.15 lacs for 10 years. The petitioner was issued entitlement certificate and it availed of the concessions. After more than one year, notice for cancelling the concession was issued on July 13, 2006, which was contested by the petitioner but vide the impugned order, the benefit was withdrawn on the only ground that the petitioner was not duly registered on the relevant date and was not, thus, "unit in pipeline" as per rule 28C(o).
(3.) When the writ petition earlier came up for hearing, the same was allowed vide order dated December 27, 2007, only on the ground that the benefit once having been given, the same could not be withdrawn by reviewing the earlier order. On appeal of the State of Haryana, the said order was set aside by the honourable Supreme Court with the observation that the question as to which was the registering authority, as contemplated under rule 28C(o) of the Rules and whether filing of IEM with the SIA amounted to registration, was required to be decided. The petitioner was directed to implead the Union of India as party. Accordingly, Union of India has been impleaded as a party and has filed its reply by way of affidavit of Shri Alok Mukhopadhyay, Under Secretary to the Government of India, Ministry of Commerce and Industries, Department of Industrial Policy and Promotion, New Delhi, dated August 10, 2010, stating that on August 4, 1999, the petitioner was informed that it was entitled for setting up the unit outside the NCT of Delhi. The location as approved earlier vide letter dated February 12, 1998, was deleted. Letter dated August 4, 2000 was only acknowledgment of TEM application form filed by the petitioner on July 24, 2000 on account of change of location.;