M.M. Kumar, J. - (1.) THIS order shall dispose of a bunch of petitions CWP Nos. 8554, 8557, 8578, 8618, 8620, 8622 and 8625 of 2009 because a common question of law raised is whether reassessment framed by the assessing authority is within the parameter of limitation provided under section 11A of the Punjab General Sales Tax Act, 1948 (for brevity, "the Act"). It may be noted that the period of five years has been prescribed under section 11A(1) of the Act for reopening of an assessment order. The facts are being referred from CWP No. 8554 of 2009. In this case, the assessment order was passed on June 4, 2004 (P5) in respect of assessment year 1998 -99. The petitioner is a company incorporated under the provisions of the Companies Act, 1956 and engaged in the manufacturing of "white crystal sugar" at its sugar mill situated in Village Patran, District Patiala. Sugar is manufactured from sugarcane and its bye -products are molasses, bagasse, etc. The bardana is purchased by the petitioner to pack and store the "white crystal sugar" manufactured by it. On March 7, 1991, the Ministry of Industries, Government of India, issued a letter of intent in favour of the Punjab State Federation of Cooperative Sugar Mills Ltd., for manufacturing of "white crystal sugar". Subsequently on February 22, 1994, the petitioner was permitted to implement the said letter of intent. The petitioner has claimed that "sugar" is amongst the items mentioned in Schedule B of the Act and exempted from payment of tax.
(2.) IT has been pointed out that on September 28, 1992, the respondent -State of Punjab notified a "Package of incentives -1992" with a view to augment new industrial investment in the State. Various incentives in the form of investment and sales tax exemption were offered to new industrial units being set up on or after October 1, 1992. As per clause 7(ii) of the "Package of Incentives -1992", new industrial units in the areas specified as B category areas were fully exempted from the payment of sales tax for a period of seven years subject to the condition that the total sales tax exemption would not exceed 150 per cent of their Fixed Capital Investment (FCI). On February 1, 1993, the respondent -State of Punjab issued a notification contemplating the "Punjab Industrial Incentive Code -1992" (for brevity, "the Code"). Clause 3.2 of the Code was applicable to such units which come into production for the first time on or after October 1, 1992. Clause 6 of the Code prescribes the eligibility conditions for incentives whereas clause 8 deals with exemption from sales tax and its sub -clause (8.3) lay down the procedure for availing of such exemption. In annexure I appended to the "Package of Incentives -1992" and in annexure II appended to "the Code", certain goods were specified on which incentives were not available. It has been submitted on behalf of the petitioner that sugar and its bye -products such as molasses and bagasse, as well as bardana have not been included in the said lists. On March 2, 1994, a certificate of registration under the Act was issued in favour of the petitioner by the assessing authority wherein the nature of its business has been specified as "manufacturing of sugar, molasses and allied goods" (P1). It has been urged that the sugar mill of the petitioner started production on December 21, 1994 and on November 21, 1995. The General Manager, District Industries Centre, Patiala, issued a "certificate of eligibility" in favour of the petitioner for the grant of incentive of sales tax exemption in terms of "the Code". It was granted sales tax exemption for a period of 84 months commencing from December 21, 1994 for the maximum amount of Rs. 36,68,43,000 (P2). On December 16, 1995, the petitioner submitted an application in form ST (D & E) to the Assistant Excise and Taxation Commissioner, Patiala, for the grant of exemption certificate under section 10A of the Act as well as the provisions of the Punjab General Sales Tax (Deferment and Exemption) Rules, 1991, which have been framed under the Act. In column (f) of the said application the petitioner has given the description of items manufactured by it as "White crystal sugar and other allied products". The exemption was sought from payment of sales tax for 84 months for an amount of Rs. 36,68,43,000 (P3). On February 5, 1996, the Assistant Excise and Taxation Commissioner, Patiala, issued the exemption certificate granting exemption to the petitioner from payment of sales tax from December 21, 1994 to December 20, 2001 for an amount of Rs. 36,68,43,000 (P4). Thereafter, the petitioner started claiming and it was granted exemption from payment of sales tax on sale of the by -products of "white crystal sugar", i.e., molasses, bagasse, etc., manufactured at its sugar mill. It was also granted exemption from payment of sales tax on Sale of bardana from its sugar mill.
(3.) ON June 4, 2004, the assessing authority passed an assessment Order in respect of the assessment year 1998 -99 and tax exemption to the tune of Rs. 2,08,18,623 was allowed (P5). While passing the said assessment order the assessing authority has also taken into account the sale of bardana and molasses by the petitioner during the year.;