2002 (7) TMI 761 - HC - VAT and Sales Tax

Summary

Issues:
1. Rejection of eligibility certificate for deferment of sales tax.
2. Dismissal of appeal against the order of assessment.
3. Dismissal of appeal by Sales Tax Tribunal for non-compliance with deposit orders.
4. Restoration of dismissed appeals after obtaining eligibility and entitlement certificates.
5. Refund of deposited amount during the pendency of appeals.

Analysis:

1. The petitioner, a private limited company, set up a new industrial unit and applied for an eligibility certificate for deferment of sales tax under rule 28-A of the Haryana General Sales Tax Rules, 1975. The claim was initially rejected by the lower screening committee but later accepted by the Higher Level Screening Committee, resulting in the issuance of the eligibility certificate on August 23, 1999. However, before the final decision on the eligibility certificate, the Assessing Authority made an assessment on December 31, 1997.

2. Subsequently, the petitioner filed an appeal against the assessment order, which was dismissed by the Joint Excise and Taxation Commissioner on August 13, 1998. The petitioner was directed to deposit a specific amount in monthly installments, which it failed to comply with, leading to the dismissal of the appeal. Further appeals to the Sales Tax Tribunal were also dismissed due to non-compliance with the deposit orders.

3. Following the dismissal of the appeals, the competent authority granted the eligibility certificate and entitlement certificate to the petitioner. The High Court, considering the subsequent issuance of these certificates, set aside the orders dismissing the appeals and directed the authority to hear the appeals on their merits without requiring the petitioner to deposit the assessed amount.

4. Additionally, the High Court noted that the petitioner had deposited a certain amount during the pendency of the appeals, of which only a partial refund had been made by the department. The court did not delve into this issue but allowed the petitioner to claim any remaining refund due to it in accordance with the law.

5. In conclusion, the High Court allowed the writ petition, quashed the impugned orders of dismissal, and directed the parties to appear for further proceedings. The court emphasized restoring the dismissed appeals after the issuance of the eligibility and entitlement certificates, ensuring the petitioner's right to be heard on merits without the need for depositing the assessed amount.