9911796707
TMI Blog2010 (10) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... pany has also prayed for a direction to the effect that clause 7(e) inserted by notification dated May 28, 1991 is not retrospective. Briefly stated, the facts of the case are that the petitioner-company is a manufacturer of hydrogenated vegetable oil (vanaspati) and refind oil and is registered under the provisions of the Rajasthan Sales Tax Act and Central Sales Tax Act. The respondent-State announced Sales Tax Incentive Scheme for Industries, 1987 (in short, "the Incentive Scheme") by notification dated May 23, 1987. In view of the aforesaid notification dated May 23, 1987, the petitioner-company made expansion by installing new plant and machinery and also invested in construction of buildings. In view of the increased capacity of prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmission of counsel for the petitioner-company is that the alleged case of evasion of lax was compounded on January 5, 1991, i.e., much prior to the aforesaid rejection dated December 11, 1991 and therefore, the compounding of tax would not entail the consequences as referred to in clause 7(e). Counsel for the petitioner-company further submits that clause 7(e) was inserted in the notification dated May 23, 1987 vide notification dated November 28, 1991 and the same is not retrospective in nature and would not apply to the pending application of the petitioner-company. In support of the said submission, counsel for the petitioner-company placed reliance on paras 7, 8 and 9 of the judgment of this court in District Level Screening Committee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in sub-clause (e) above. 9(c) The Screening Committee shall be empowered to amend, suspend, restore or cancel the sanction for eligibility certificate accorded by it and copies of such orders shall be endorsed to the assessing authority.' 8. The relevant clause 7(e) of the Scheme merely stipulates that the industrial unit covered by this scheme shall not be entitled to claim any benefits under it if it has been penalised for avoidance or evasion of tax or any case of avoidance or evasion of tax is pending against it at any forum. The proviso gives power to the Screening Committee to waive such condition in appropriate cases. The proviso was inserted in clause 7(e) with effect from March 4,1992. Obviously, if an avoidance or allege ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner-company by invoking clause 7(e) is illegal. The issue of retrospective application of clause 7(e) of the notification dated May 23, 1987 is insignificant as per the aforesaid finding on the issue of compounding of tax evasion prior to the rejection of the eligibility certificate. In the result, the writ petition is allowed. The rejection order dated December 11, 1991, issued pursuant to the meeting dated November 22, 1991, is quashed and set aside. So far as denial of eligibility certificate to the petitioner-company is concerned, the case is remanded back to the District Level Committee with the direction to reconsider the case in the light of the aforesaid judgment, within a period of three months from the date of receipt of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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