9911796707
TMI Blog2010 (4) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... r for compliance. Consequently, the order of the first respondent dated December 26, 2007 demanding payment of tax for the assessment year 1996-97 to 1998-99 stands quashed. X X X X Extracts X X X X X X X X Extracts X X X X ..... , 39435 Nos. of Axle Housing and Rs. 3,145.21 lakhs sales turnover and till the unit crossed this, the petitioner had continue to pay the tax as before and the deferral only on the incremental volume of production/sales that the petitioner would be entitled to the deferral of sales tax. In terms of the eligibility certificate thus granted, the petitioner executed an agreement with the second respondent-Department on October 23, 1996, which also fixed the benchmark of the assessment year 1994-95 in terms of the eligibility certificate. The respondents do not dispute the fact that even though the eligibility certificate was issued on September 2, 1996, as the commercial production of the unit commenced on November 3, 1995, the eligibility c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he three assessment years 1996-97, 1997-98 and 1998-99 at Rs. 1,32,72,475, Rs. 51,10,230 and Rs. 72,32,106, respectively. Aggrieved by the view of the second respondent on the benchmark fixed with reference to 1995-96, the present writ petition is filed. The learned counsel appearing for the petitioner referred to G.O. Ms. No. 119 dated April 13, 1994, requiring that the industry would be eligible for sales tax deferral only if the production in the financial year exceeded the base production volume, which was the highest annual production in the three years prior to expansion and that specification of the base production volume and the base sales volume would have to the worked out and incorporated in the eligibility certificates at the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner has to maintain the production and sales for the purposes of availing of the deferral of sales tax, it goes without saying that the Assistant Commissioner has no jurisdiction to alter this vital requirement, but to have the agreement executed in tune with what had been stated in the eligibility certificate. Consequently the demand made under the impugned order relating to the assessment years 1996-97 to 1998-99 alleging availing of excess deferral has to be set aside as going beyond the jurisdiction of the second respondent. In the circumstances, I have no hesitation in allowing the writ petitions, thereby setting aside the orders passed by the second respondent herein that the second respondent shall go by the base year fixed u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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