2000 (11) TMI 1189 - HC - VAT and Sales Tax

Summary

Issues:
Petition for quashing of decision of Lower Level Screening Committee (LLSC) and Higher Level Screening Committee (HLSC) rejecting exemption/deferment certificate application.

Analysis:
1. The petitioner established a new industrial unit and applied for tax exemption. The LLSC rejected the application citing non-production of change of land use certificate, following HLSC's decision on similar appeals. The rejection was communicated to the petitioner.
2. The petitioner's appeal before the HLSC was also dismissed for failing to furnish the required permission despite multiple opportunities. The petitioner challenged the decisions on grounds of prior High Court decision and retrospective application of a specific rule.
3. The respondents justified the decisions based on non-submission of the required certificate and invoked a specific rule for the operative period of tax exemption benefits.
4. The court found the decisions of LLSC and HLSC legally unsustainable. Referring to a previous case, the court noted that similar appeals had been quashed, rendering the rejection of the petitioner's application unjustified.
5. The court further held that the rule invoked by HLSC post-dated the petitioner's application submission, making it inapplicable retrospectively. The State Government lacked authority to frame rules with retrospective effect under the relevant Act.
6. Consequently, the court allowed the writ petition, quashing the decisions of LLSC and HLSC. The HLSC was directed to re-adjudicate the petitioner's appeal within three months of receiving a certified copy of the court's order, after hearing the petitioner's representative.