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TMI Blog1997 (1) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication of the petitioner, M/s. Rao Stone Crushing (in C.W.P. No. 11682 of 1994) which was for exemption of payment of sales tax. Notifications, annexures P-4 and P-6 as also order, annexure P-7 have been challenged on various grounds but the grounds that have actually been pressed for the desired relief are that by virtue of section 11 of the Haryana Regulation and Control of Crusher Act, 1991 (hereinafter to be referred to as "the Act of 1991") owners who install stone crushers within the crusher zone were granted sales tax exemption and the contrary provisions of the Sales Tax Act as also the provisions in the amendment or substitution of the negative list by including therein "stone crushers" for which sales tax cannot be exempted, stand repealed as also action of the respondents in issuing order, annexure P-7, rejecting the prayer of the petitioner for exemption to pay sales tax needs to be quashed on the principle known as "equitable estoppel". We, thus, propose to dispose of all these eight petitions by this common order. Before, however, various contentions in support of the prayers contained in the writ are examined, it would be better to give factual backdrop of the ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... May 25, 1993 has been placed on records as annexure P-3. By virtue of the subsequent notification dated September 17, 1993, stone crushers whether holding a licence or not were disentitled to any incentives as envisaged under the New Industrial Policy, 1992. A copy of this notification has been annexed as annexure P-4. The State of Haryana published in the official Gazette on October 13, 1993, a draft notification proposing to substitute Schedule III of the Haryana General Sales Tax Rules, 1975 with retrospective effect from May 25, 1993. Many owners of stone crushers having their units in the said area or at other places in the State of Haryana filed objections/ suggestions with respect to the draft rules. The said owners requested that the incentives should be granted from the date of grant of licence under the Act of 1991 as all of them had invested huge sums of money to set up the crushers keeping in mind the incentives offered under the said Act and notification dated March 10, 1992. The petitioner did not fall within the industry at Sr. No. 4 in the said Schedule as it already held a licence under the Act of 1991 since October 28, 1992. Otherwise, the draft rules were in con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from payment of sales tax. 5.. Opposing the cause of the petitioner, two separate written statements, one on behalf of the State of Haryana and the other on behalf of respondents Nos. 2 and 3, i.e., Industries Department, Haryana and General Manager, District Industries Centre, have been filed. It has, inter alia, been pleaded in the written statement filed on behalf of the State of Haryana that the Haryana Government, vide notification, annexure P-5, published draft rules dated October 13, 1993 in which stone crushers not holding licence under the Act of 1991 (Schedule III) appended to rule 28-A were intended to be kept under negative list and objections to this effect were invited. After considering the objections, the State Government vide annexure P-6 published on February 11, 1994, a negative list of class of industries which were not entitled to the benefit of tax exemption. Stone crushers appear at Sr. No. 4 of Schedule III of the negative list and, thus, the petitioner is not entitled to the benefit of tax exemption. It is further the case of the respondent-State that no right of the petitioner has been infringed by virtue of amendment in the Rules as the stone crusher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the parties as has been culled out, it transpires that the case of the petitioner for the desired relief is exclusively based upon subsection (b) of section 11 of the Act of 1991 as also notification issued by the Industries Department (annexure P-3) dated September 25, 1993. The incentives with regard to cash subsidy, exemption/deferment of sales tax and electricity duty by virtue of sub-section (b) of section 11 are admissible to the industries under various incentive schemes of the Industries Department of the State Government. Clause (b) of section 11 in terms, therefore, does not give a complete tax holiday to stone crushers for all times to come. The incentives as mentioned in sub-section (b) of section 11 like cash subsidy, exemption/deferment of sales tax and electricity duty further depend upon various incentive schemes of Industries Department of the State Government. The first question that needs adjudication, therefore, is as to whether there was in existence any scheme of the Industries Department exempting stone crushers from payment/deferment of sales tax. No scheme as such has either been relied upon or produced that might entitle stone crushers exemption from pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ossibly be exempted from sales tax. That, however, does not mean that those who are holding licence are automatically exempted from payment of sales tax. All that can be said about notification dated 25th of September, 1993 of annexure "D" of annexure "X" is that there was absolutely no power with the Industries Department to exempt stone crushers from payment of sales tax which such stone crushers were not licence holder under the Act. In our considered view notification annexure P-3 would not tantamount to create any specific exemption to those who were holding licence. With a view to avail benefit of non-payment of sales tax, there had to be a specific exemption to those who held licence under the Act of 1991. Neither sub-section (b) of section 11 nor notification dated 25th of September, 1993 (annexure P-3) nor for that matter the policy of the Government, annexure "X" and the appended annexure therewith, i.e., annexure "D" anywhere in terms talk of any exemption of payment of sales tax to stone crushers holding licence. The very foundation of the petitioner's case thus, having been knocked out, there is absolutely no need to further discuss the matter but since arguments have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the negative list prepared under the Haryana General Sales Tax Rules, 1975, is concerned all stone crushers of whatever kind were always included in the negative list. The negative list of Schedule III came to be prepared by virtue of rule 28A of the Haryana General Sales Tax Rules, 1975. The facts as have been fully detailed thus entail a finding to be recorded that even if in 1993 (annexure P-3) stone crushers holding licence under the Act of 1991 were exempted to pay sales tax, the policy, if any, came to be revised vide impugned notifications and, in any case, the petitioner had no right to claim exemption of sales tax after impugned notifications were issued. 10.. Mr. Sarin, Senior Counsel representing the petitioner, was at pains to argue that principle of equitable estoppel is involved in the present case as also of implied repeal. Submissions based upon the principles referred to above need no discussion whatsoever as we do not find from the reading of sub-section (b) of section 11 of 1991 Act that the petitioner-industrial unit was actually exempted from payment of sales tax. With fairness to the counsel, however, suffice it to mention that he has relied upon Pournam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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