2002 (4) TMI 933 - HC - VAT and Sales Tax

Summary

Issues:
Grant of eligibility certificate under the Haryana General Sales Tax Act, 1973 read with Haryana General Sales Tax Rules, 1975.

Analysis:
The petitioner, a sole proprietorship concern for manufacturing and selling rice, applied for an eligibility certificate in 1996 to avail tax exemption under section 13-B of the Act read with rule 28-A(5) of the Rules. The application was rejected by the Lower Level Screening Committee (LLSC) due to non-production of a change of land use certificate (CLU certificate). The Higher Level Screening Committee (HLSC) also dismissed the appeal. However, the decisions of LLSC and HLSC were set aside by the Court in a previous case, directing HLSC to reconsider the petitioner's case. In compliance, HLSC rejected the petitioner's request again in 2002 for not producing the CLU certificate.

The petitioner argued that the requirement of a CLU certificate was not applicable as the land was within municipal limits, citing a previous judgment and annexures to support the claim. However, the Court found no merit in this argument. HLSC rejected the plea for exemption from CLU certificate based on the fact that the unit was situated outside original municipal limits and within a controlled area, making the CLU certificate mandatory under the Punjab Scheduled Roads and Controlled Areas Act, 1963.

HLSC's reasons for rejecting the petitioner's request were found to be in line with the provisions of rule 28-A(5) and form ST-70, making the production of CLU certificate a mandatory condition for the eligibility certificate. The petitioner's failure to produce the CLU certificate despite setting up the industry in 1996 and the extension of municipal limits in 1997 led to the dismissal of the writ petition. No other points were argued, resulting in the dismissal of the petition.

In conclusion, the Court upheld HLSC's decision to reject the petitioner's request for the eligibility certificate due to the non-production of the CLU certificate, as mandated by the relevant rules and regulations. The writ petition was dismissed based on these grounds.