2004 (1) TMI 659 - HC - VAT and Sales Tax

Summary

Issues:
- Petitioner's application for eligibility certificate declined due to lack of change of land use certificate
- Appeal against the decision declined by the Secretary to Department of Industries, Haryana
- Petitioner filed a writ petition challenging the decision
- Petitioner granted permission to change land use during the pendency of the writ petition
- Higher Level Screening Committee declined grant of eligibility certificate citing sub-judice matter in High Court
- Court directed Higher Level Screening Committee to reconsider eligibility certificate application in light of the change of land use permission

Analysis:
The petitioner, a company incorporated under the Companies Act, applied for an eligibility certificate to obtain tax exemption/deferment under rule 28A of the Haryana General Sales Tax Rules, 1975. The Higher Level Screening Committee initially declined the petitioner's request, citing the absence of a change of land use certificate from the Department of Town and Country Planning. Subsequent appeal to the Secretary to Department of Industries, Haryana was also unsuccessful, leading the petitioner to file a writ petition challenging the decision.

During the pendency of the writ petition, the petitioner was granted permission to change the land use, which was communicated via a letter dated June 9, 2003. However, the Higher Level Screening Committee again declined the grant of eligibility certificate, stating that the matter was sub-judice in the High Court. The court, considering the subsequent event of the change of land use permission, set aside the previous decision and directed the Committee to reconsider the petitioner's application for the eligibility certificate in light of the changed circumstances.

Ultimately, the court disposed of the writ petition with the observation that the Higher Level Screening Committee should review the petitioner's claim for the eligibility certificate based on the new development of the change of land use certificate being granted. The judgment emphasized the importance of considering updated circumstances in such matters and ensuring a fair evaluation of the petitioner's eligibility for the tax exemption/deferment.