(1.) BY means of this writ petition, moved under article 226 of the Constitution of India, the petitioner has sought declaration to the effect that Notification No. 698/XXVII(8)/Commercial Tax (VAT)/2007, dated November 14, 2007, is illegal, ultra vires and void. Also writ in the nature of certiorari has been sought quashing the provisional assessment orders dated March 20, 2008, for the months of April 2007 and January 2008, issued by the Deputy Commissioner (Tax Assessment) IV, Commercial Tax, Dehradun, and the penalty order dated April 9, 2008 passed thereafter. A mandamus has also been sought directing respondents not to act in pursuance of aforesaid notification and to grant full period exemption in Central sales tax at the concessional rate of tax at one per cent against form DD under the Notification No. 23/XXVII(8)/Commercial Tax/2005, dated January 9, 2006.
(2.) HEARD learned counsel for the parties, and perused the affidavit, counter -affidavit and rejoinder affidavit, on record.
(3.) BRIEF facts of the case, as narrated in the writ petition are that the petitioner - M/s. HCL Infosystem Limited, is a duly incorporated company under Indian Companies Act, 1956. The petitioner had obtained allotment -cum -lease of plot Nos. 1, 2, 27 and 28 in Sector 5, 11E, Pant Nagar, District Udham Singh Nagar, in the year 2005, and the possession of said land was given to the petitioner on May 7, 2005, for establishing its unit. The petitioner - company is engaged in manufacture and sale of Information Technology (for short, I.T.) products, viz., computers and parts thereof, in the aforesaid plots. Earlier to establishment the factory at Pant Nagar, petitioner was engaged in only trading activity pertaining to electronics goods, viz., photo copiers, fax, etc., in Uttarakhand. The petitioner is duly registered under the Uttaranchal Value Added Tax Act, 2005, as well as the Central Sales Tax Act, 1956. The State Government of Uttarakhand exercising its power under sub -section (5) of section 8 of the Central Sales Tax Act, 1956, issued a Notification No. 23/XXVII(8)/Commercial Tax/2005, dated January 9, 2006, whereby it is provided that in the public interest, with effect from date of publication of said notification, tax payable under sub -section (2) of section 8 of the Act by a manufacturer having its place of business in Uttaranchal (now Uttarakhand), in respect of the sales by him in the course of inter -State trade or commerce of information technology goods as specified, shall be calculated at the rate of one per cent for a period of five years, on furnishing declaration in form DD. (A copy of the said notification is annexed as annexure 3 to the writ petition). According to the petitioner, the aforesaid notification crystallises and creates vested and accrued rights, as per the representation or terms made by the Government. The petitioner has invested more than 20 crores in establishing its unit in the aforesaid plots allotted to it, and started its commercial production on June 27, 2006, availing of the tax concession. However, the State Government vide Notification No. 698/XXVII(8)/Commercial Tax (VAT)/2007, dated November 14, 2007 (copy of which is annexure 6 to the writ petition) abruptly rescinded the earlier notification dated January 9, 2006. Aggrieved by the said subsequent notification, the petitioner made a representation to respondent No. 1, but to no avail. Instead, the petitioner was served with the impugned notices of assessment and the penalty by the respondent authorities.