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TMI Blog2006 (11) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... nexure P 6 and recovery summons dated June 1, 2005, annexure P 7, seeking to recover a sum of Rs. 1,70,79,412. Case of the petitioner is that it applied for exemption from sales tax under rule 28A of the Rules and the same was granted vide eligibility certificate dated February 21, 2003, annexure P 3 for the period from March 28, 1998 to March 27, 2005 subject to the limit of the amount specified therein. After the petitioner had already availed of the benefit, it came to light that the petitioner was not eligible to the exemption as its unit was in the negative list being ethyl alcohol based industry for which exemption could not be granted. On January 29, 2002, proceedings for withdrawal of eligibility certificate were initiated and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rency thereof had expired. Before proceeding further, it may be necessary to extract the relevant provisions of the Rules dealing with the issue: 28A(5)(a) Every eligible industrial unit which is desirous of availing benefit under this rule shall make an application in form S.T. 70 in triplicate alongwith attested copies of the documents mentioned therein to the General Manager, District Industries Centre within 90 days of the date of its going into commercial production or the date of coming into force of this rule whichever is later. No application shall be entertained if not preferred within time. An application with incomplete or incorrect particulars including the documents required to be attached therewith shall be deemed as ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all lie to the Higher Level Screening Committee, if preferred within 30 days of the communication of the decision. The decision of the Higher Level Screening Committee in such appeal shall be final. (g) An appeal from the original decision of the Higher Level Screening Committee shall lie to the Secretary, Industries, if preferred within 30 days of communication of the decision. The decision of the Secretary, Industries shall be final. (h) The eligibility certificate will be issued by the General Manager, District Industries Centre in cases approved by the Lower Level Screening Committee and by the Director of Industries and any officer nominated by him not below the rank of Additional Director of Industries in cases approved by the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or production capacity: Provided that no order of withdrawal of the eligibility certificate shall be made without affording a reasonable opportunity of being heard to the affected unit. (b) When the eligibility certificate is withdrawn, the exemption/ entitlement certificate shall be deemed to have been withdrawn from the 1st day of its validity and the unit shall be liable to payment of tax, interest or penalty under the Act as if no entitlement certificate had ever been granted to it. A perusal of rule 28A(5) of the Rules shows that complete procedure has been laid down for filing and processing of the application for issue of eligibility certificate to claim the benefit of exemption from/deferment of payment of tax. An applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tificate are as under: 10. period of eligibility from March 28, 1998 to March 27, 2005 (seven years) subject to ceiling of Rs. 1,63,66,999 (Rupees One crore sixty three lacs sixty six thousand nine hundred and ninety nine only). . . . (4) The eligibility certificate shall cease to be operative with effect from the date the unit reaches the ceiling of deferred/exempted amount of tax prescribed in the eligible certificate. A perusal of the conditions of eligibility certificate granted to the petitioner shows that the maximum amount of benefit available to the petitioner was fixed and also maximum period during which the benefit could be availed of that is Rs. 1,63,66,999 for the period from March 28, 1998 to March 27, 2005 resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 28A of the Rules provides that it is the withdrawal of the eligibility certificate, which has to take place during its currency and not that the process of withdrawal is to start during that period. Any order passed for withrawal of eligibility certificate after its currency is over, would be clearly beyond the enabling provisions of sub-rule (8) of rule 28A of the Rules. For the reasons recorded above, the writ petition is allowed, impugned order dated February 23, 2005, annexure P 5 passed by Lower Level Screening Committee withdrawing eligibility certificate, order dated December 2, 2005, annexure P 12 passed by the Higher Level Screening Committee on appeal and consequential proceedings for recovery of the amount, are quashed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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