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TMI Blog2013 (3) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondents : Nitin Kaushal, Additional Advocate-General Haryana, The judgment of the court was delivered by MS. RITU BAHRI J.- The present petition under article 226/227 of the Constitution of India is for quashing the notice (P8) seeking recovery of an amount of ₹ 6 lacs each from the petitioners under the Haryana General Sales Tax Act, 1973 (for brevity, the HGST Act ) and Central Sales Tax Act, 1956 (for short, the CST Act ) and order dated February 18, 2005 (P9). M/s. Ekta Plastics, Ratera, District Bhiwani, respondent No. 3 set up a new industrial unit at village Ratera in the year 1995. The unit was granted benefits of sales tax exemption under rule 28A of the Haryana General Sales Tax Rules, 1975 (fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondentcompany, which was dismissed by the trial court, vide its judgment dated March 21, 2011 (P11) on the ground that as per section 62 of the HGST Act, the jurisdiction of the civil court is barred. An appeal filed against the judgment was also dismissed, vide judgment dated May 27, 2011 (P13). The learned counsel for the petitioners has argued that after granting of exemption, the assessment for the year 1996-97 was framed on July 27, 2003. Learned counsel has referred to the surety bonds (P3 and P4) given by the petitioners. The first surety bond was given in May, 1995. The petitioners have stood surety in one year only. Thereafter, the exemption certificate issued to the company for the year 1995-96 expired on June 30, 1995. Thus t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. The case set up by the petitioners is that they stood surety to the respondents by signing form ST-50 executed in May, 1995. The unit had been granted eligibility certificate to avail of benefit of exemption from payment of sales tax for a period of nine years from May 5, 1995 to May 4, 2004. The provision for availing of exemption is prescribed under rule 28A of the Rules. Respondent No. 3 was granted sales tax exemption after following the procedure as made out in rule 28A(5) and (6) of the Rules. The eligible industrial unit is to make an application for grant of exemption certificate every year. This application is required to be accompanied by a surety bond in form ST-50. Rule 28A(6)(a)(ii) reads as under: (ii) tax exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of estimated tax liability of the current year and difference between actual and estimated tax liability of previous year in case of tax deferment, as also other documents mentioned in the application. The Deputy Excise and Taxation Commissioner after making such enquiries as are necessary, and after satisfying himself that the applicant is a bona fide industrial unit and has not misused the exemption/ entitlement certificate, shall renew the exemption/entitlement certificate within 30 days of the making of the application for renewal failing which the certificate shall remain valid until the renewal is refused or the certificate otherwise expires. The exemption/entitlement certificate on renewal shall unless cancelled or withdraw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of exemption certificate. The additional security is to be given along with declaration of notional sales tax liability of the current year and the difference between the actual notional tax liability of the previous year. All these details shall accompany the application for renewal. Thereafter, the Deputy Excise and Taxation Commissioner after satisfying himself shall renew the exemption/entitlement certificate. The application can be rejected after giving the applicant an opportunity of hearing. In the present case, the exemption certificate was renewed up to June 30, 1997. It is not the case of the respondent-Department that the petitioners had stood surety again in any subsequent year. The respondents in the written statement have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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