9911796707
TMI Blog2012 (7) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred to as 'the Act'), introduced a new incentive policy giving sales tax incentives to eligible units established in less developed and rural areas for the period 16th August, 1995 to 15th August, 2000 (hereinafter referred to as the scheme ). The said scheme, inter alia, provided for incentives by way of sales tax exemption and sales tax deferment. The petitioner, who was eligible for availing of the benefits under the scheme, made an application for availing of the benefit of sales tax exemption under the scheme. After making detailed inquiry the second respondent granted an eligibility certificate dated 5th January, 1998. Under the said eligibility certificate the limit of exemption was ₹ 10,14,790/- . Pursuant thereto, the third respondent issued a sales tax exemption certificate dated 5th January, 1998 for the period 14th July, 1996 to 13th July, 2002 provisionally granting exemption to the tune of ₹ 10,14,790/-. Subsequently, after due verification and detailed inquiry, a final eligibility certificate dated 18th September, 1998 came to be issued by the second respondent by way of amendment of the earlier certificate, enhancing the total exemption limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and rejected the request of the petitioner to maintain the limit of ₹ 41,64,000/-. Being aggrieved, the petitioner has moved the present petition. 5. Vehemently assailing the impugned order dated 15th April, 2004, Mr. J.S. Yadav, learned advocate for the petitioner submitted that except for stating that the earlier exemption limit was not in accordance with the provisions of the scheme, no reasons have been assigned as to why the same was required to be reduced. It was urged that it was in view of the final exemption certificate granted by the respondent authorities that the petitioner had not recovered sales tax from its customers to the extent of the exemption limit. It was only after the exemption limit was exhausted that the respondents, after a considerable delay, have amended the earlier certificate without assigning any proper reasons. It was submitted that such amendment whereby the exemption limit is reduced, seriously affects the rights of the petitioner inasmuch as, it would now not be possible for the petitioner to recover the sales tax to the extent of the differential amount. According to the learned counsel, when the final exemption certificate was granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incentive subject to the conditions of the Government Resolution and the provisions of the Act and the notifications thereunder. The Sales Tax Incentives available under the scheme were (a) Sales Tax Exemption and (b) Sales Tax Deferment. As noted earlier, the petitioner had opted for the sales tax exemption scheme. The procedure for availing of the benefit under the scheme is provided under Part-III of the resolution under paragraph 7 thereof. Paragraph 7.1 lays down the procedure for State Cash Subsidy and paragraph 7.2 which is relevant for the present purpose lays down the procedure in respect of the sales tax incentive. The procedure laid down thereunder is that the eligible industrial unit shall register itself atleast 90 days before the date of commercial production with the sanctioning authority. The sanctioning authority will issue registration certificate with a copy to the Sales Tax Department. On the basis of this registration certificate the eligible unit can start enjoying the benefit of sales tax from the date of commercial production. However, the validity of registration certificate shall be only 120 days from the date of commercial production. The unit shall have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e total eligibility would be issued. Thus, when a final eligibility certificate is issued, one would certainly be justified in presuming that prior to issuance of the final eligibility certificate necessary verification has been carried out. That of course does not mean that in no case such certificate can be amended. In a given case, if the facts so justify it may be permissible for the authorities to amend the certificate after following due procedure. However, even such action has to be taken within a reasonable time, before the party irreversibly changes its position as in the present case. Here, the petitioner has already exhausted the exemption limit. Accordingly, it has not collected sales tax from its consumers in respect of the goods covered under the exemption. Now, an irreversible situation has arisen whereby it is not possible for the petitioner to recover tax on sale of goods in respect of the differential amount between the exemption granted earlier and the reduced amount. Thus, the action of the respondents in reducing the exemption limit prejudicially affects the petitioner without any default on its part. As is evident from the record of the case including the affi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the extent to which the benefit under the State Act has been already availed up to 4-4-1994, the date on which the ex parte order of stay was made by this Court, on the basis of the eligibility certificates so issued, the State Government would not disturb that position by seeking to recover any amount under that head. and accordingly was of the view that there was no justification in reviewing the said certificate after the term thereof had expired and therefore, long after its benefit had been availed by the appellant or at all. 11. The facts of the present case, wherein the eligibility certificate is sought to be amended without any justification, that too, long after its benefit had been availed by the petitioner would be squarely covered by the aforesaid decision. Under the circumstances, the impugned amendment certificate dated 9th October, 2001 as well as the order dated 15th April, 2004 cannot be sustained. 12. It may also be noted that during the course of hearing of the earlier writ petition filed by the petitioner, it had been stated on behalf of the respondents that a fresh amendment certificate would be issued after hearing the petitioner whereas in the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
