- (1.) The petitioner has filed the present petition impugning the order dated 17.12.2013 (Annexure P-15), whereby the request of the petitioner for extension of period of benefit for exemption from payment of sales tax was rejected.
(2.) Learned counsel for the petitioner submitted that the petitioner is a public limited company engaged in the manufacture and sale of caustic soda and other in-organic chemicals. It had been promoted by the Punjab State Industrial Development Corporation Limited (for short, 'PSIDC'), which is wholly owned Punjab Government Company. PSIDC holds 44% shares of the petitioner-company. New Industrial Policy, 1996 (hereinafter described as "the 1996 Policy") was notified by the Government on 20.3.1996, which provided for various benefits to the new industrial units as well as the industrial units expanding their capacity. The petitionercompany was incorporated in the year 1975 and came into commercial production on 30.1.1984. After the 1996 Policy was notified, the petitioner after making huge investments increased the capacity for manufacturing caustic soda from 100 metric ton per day to 154 metric ton per day. The commercial production started on 18.12.1998. As per the 1996 Policy and the Punjab General Sales Tax (Deferment & Exemption) Rules, 1991 (for short, 'the Rules'), the petitioner is entitled to the benefit for a period of 120 months from the date of production with a cap of 300% of fixed capital investment. After the unit of the petitioner came into commercial production on 18.12.1998, it applied for issuance of eligibility certificate on 4.6.1999, which was granted on 22.9.2000 effective from 18.12.1998 for a period of 120 months or till such time the maximum amount of exemption is availed of, whichever is earlier. Thereafter, application was filed for grant of exemption certificate, which was granted on 3.1.2001. The petitioner started availing the benefit of exemption from payment of tax on 1.4.2003 and during the period of eligibility could avail of benefit to the extent of Rs. 58.33 crores only.
(3.) Before the expiry of the period of eligibility, the Principal Secretary, Department of Industries wrote a DO letter to the Financial Commissioner, Department of Excise and Taxation claiming that period of eligibility be made effective from 1.4.2003, the date from which the petitioner started availing the benefit. Vide letter dated 22.9.2008, the petitioner-company also made a request to the Principal Secretary, Department of Industries in the same line. The issue was considered in the meeting held under the Chairmanship of the then Chief Secretary on 13.1.2010 and it was decided that PSIDC should move a case for extension. Thereafter, PSIDC made a request on 11/26.2.2010 to the Financial Commissioner, Department of Excise & Taxation. PSIDC vide communication dated 3.6.2010 conveyed the petitioner that request for extension of period was rejected by the Department of Excise and Taxation vide memo dated 24.5.2010. Challenging the same, the petitioner filed CWP No. 15831 of 2013 Punjab Alkalies and Chemicals Ltd. v. Government of Punjab and others, which was dismissed as withdrawn on 26.7.2013 with liberty to the petitioner to seek appropriate remedy in accordance with law. Again a representation was made by the company on 16.8.2013 to the Financial Commissioner, Department of Excise and Taxation and Principal Secretary, Department of Industries and Commerce for the same relief, which was rejected vide communication dated 17.12.2013.;