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TMI Blog2024 (5) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... an industrial unit under the Incentive Policy itself. The Industrial Incentive policy is issued by the State Government after such Policy is approved by the Cabinet itself. Such notification is issued to carry out the objectives and the policy decisions taken in the Industrial Policy itself. If any notification issued by the government order in exercise of powers conferred in the Act, is found to be repugnant to the Industrial Policy declared in a government resolution, then the said notification must be held to be bad to that extent. As held by Hon ble Supreme Court in Suprabhat Steel Ltd s case, the State Government cannot deny any benefit which is otherwise available to an Industrial Unit under the Incentive Policy itself and in the present case, the benefit of exemption was available to the petitioner under the Special Package of Incentive for Information Technology Industry Policy . The condition imposed in Sub Para V of Rule 2 of Amendment Rules dated 16.09.2004 with respect to the date i.e 30.04.2000 by which effective steps are to be taken is struck down. Order dated 28.06.2002 withdrawing the exemption from payment of sales tax is quashed. Exemption Certificate granted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to the deferment of or exemption from payment of tax in accordance with the provisions of the Punjab General Sales Tax (Deferment and Exemption) Rules, 1991 for the period from 7.9.2K to 6.9.2010 subject to the maximum amount of tax exemption of Rs. Full." 4. Vide order dated 28.06.2002, the Certificate issued by the department was withdrawn and the petitioner was directed to deposit the entire amount which was due as per the sales. Order dated 28.06.2002 (Annexure P.8) withdrawing the exemption is reproduced as under: "As conveyed by the Head Office, Excise & Taxation Deptt Punjab Patiala, the Excise and Taxation Deptt has not notified the Policy for grant of Sales Tax Exemption. So exemption certificate issued by this Deptt is hereby withdrawn and you are directed to deposit the entire tax which was due as per your sales within Ten days from the receipt of this notice." 5. The petitioner challenged the order withdrawing the Exemption granted to it by way of filing writ petition bearing CWP No. 4309 of 2003 in this Court. 6. This Court vide order dated 15.05.2003 disposed of the writ petition, which reads as under: "This is a petition for issuance of a writ of mand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment in its own industrial incentive policy. But in exercise of such power, it would not be permissible for the State Government to deny any benefit which is otherwise available to an industrial unit under the Incentive Policy itself. The Industrial Incentive policy is issued by the State Government after such Policy is approved by the Cabinet itself. The issuance of the notification under Section 7 of the Bihar Finance Act is by the State Government in the Finance Department which notification is issued to carry out the objectives and the policy decisions taken in the Industrial Policy itself. In this view of the matter, any notification issued by the government order in exercise of power under Section 7 of the Bihar Finance Act, if is found to be repugnant to the Industrial Policy declared in a government resolution, then the said notification must be held to be bad to that extent. In the case in hand, the notification issued by the State Government on 4.4.1994 has been examined by the High Court and has been found, rightly, to be contrary to the Industrial Incentive Policy, more particularly the Policy engrafted in Clause 10.4 (i)(b). Consequently, the High Court was fully jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 0% for customized software for a period of next five years. III to XI xxxx xxxxxx" 12. A perusal of the same shows that exemption/deferment under this Policy from sale tax is granted for a period of ten years. As per the record, the petitioner in view of the above mentioned Policy was granted exemption from payment of Sales Tax vide Exemption Certificate dated 26.09.2001. The same is reproduced hereinbelow: "It is hereby certified that the industrial unit in the name and style of M/s OST Electronics Ltd situated at D-90, Industrial Area address Phase VII SAS Nagar (Mohali) under the Punjab General Sales Tax Act, 1948, Registration Certificate No. 60791212 with date of validity from 07.9.2K and further holding eligibility certificate No. 6625 dated the 30.7.01 is entitled to the deferment of or exemption from payment of tax in accordance with the provisions of the Punjab General Sales Tax (Deferment and Exemption) Rules, 1991 for the period from 7.9.2K to 6.9.2010 subject to the maximum amount of tax exemption of Rs. full." 13. It would be relevant to repeat here that the exemption from payment of sales tax granted to the petitioner was withdrawn on 28.06.2002. Relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide No.15/4/99-51B/2174 dated 15.03.2000. (ii) In case there are recommendations by BIFR regarding Sales Tax Exemption/Deferment, the same shall be considered by the Empowered Committee for adoption not withstanding the abolition of Sales Tax Exemption/Deferment. (iii) Units which may have taken following effective steps or which may take these effective steps by 30th April, 2000 will also be eligible for grant of Sales Tax Exemption/Deferment, after coming into production: (a) to (c) xxxx xxxxx (iv) & (v) xxx xxxx 16. A perusal of the above shows that it is specifically mentioned that no sales tax based incentive i.e sale tax exemption or deferment from the sales tax will be granted to any new industrial unit or existing unit undertaking expansion except the following : "Information Technology units shall continue to get sales tax exemption/deferment as provided in the Information Technology Policy notified vide No. 15/4/99-51B/2174 dated 15.03.2000". 17. Meaning thereby, the action of the respondents in withdrawing the exemption Certificate issued by the Department on 26.09.2001 vide order dated 28.06.2002 itself is contrary to the Notification dated 26.04.2000. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was granted exemption Certificate on 26.09.2001 for a period of ten years i.e from 07.09.2000 to 06.09.2010. 20. In Suprabhat Steel Ltd's case (supra), it has been observed that issuance of such notifications entitles the industrial units to avail of the incentives and benefits declared by the State Government in its own industrial incentive policy. But in exercise of such power, it would not be permissible for the State Government to deny any benefit which is otherwise available to an industrial unit under the Incentive Policy itself. The Industrial Incentive policy is issued by the State Government after such Policy is approved by the Cabinet itself. Such notification is issued to carry out the objectives and the policy decisions taken in the Industrial Policy itself. If any notification issued by the government order in exercise of powers conferred in the Act, is found to be repugnant to the Industrial Policy declared in a government resolution, then the said notification must be held to be bad to that extent. 21. As held by Hon'ble Supreme Court in Suprabhat Steel Ltd's case (supra), the State Government cannot deny any benefit which is otherwise available to an Industrial Un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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