WALIA STONE CRUSHING COMPANY Vs. STATE OF HARYANA

JUDGEMENT

(1.) In this petition filed under Article 226 of the Constitution of India, the petitioner has prayed for quashing the decisions taken by Lower Level Screening Committee (for short, "the LLSC") and the Higher Level Screening Committee (for short, "the HLSC") in their meetings held on March 3, 1999 and June 29, 2000 respectively in the matter of withdrawal of eligibility certificate issued to the petitioner under Rule 28A(2)(i) of the Haryana General Sales Tax Rules, 1975 (for short, "the Rules"). It has also prayed for issuance of a writ in the nature of mandamus to the Deputy Excise and Taxation Commissioner, Yamunanagar (respondent No. 3) to issue exemption certificate.

(2.) A perusal of the record shows that after obtaining necessary certificate from the District Town Planner, Ambala, and the General Manager, District Industries Centre, Yamuna nagar, and the Haryana State Board for the Prevention and Control of Water Pollution, the petitioner installed stone crusher at Village Dev Dhar in District Yamunanagar. Thereafter, it applied for grant of eligibility certificate under Rule 28A(5) of the Rules. The General Manager, District Industries Centre, Yamunanagar, referred the same to respondent No. 3 for comments. Vide memo dated May 11, 1993, respondent No. 3 expressed the view that benefit of tax exemption cannot be granted to the petitioner because stone crusher falls in the negative list. Notwithstanding this, the LLSC accepted the petitioner's application. Consequently, the General Manager, District Industries Centre, Yamunanagar, issued eligibility certificate dated July 10, 1993 entitling the petitioner to claim exemption from payment of sales tax of Rs. 22,10,144 for the period from February 16, 1993 to May 31, 1997. However, the application submitted by the petitioner under Rules 28A(6)(b) of the Rules for issuance of exemption certificate was rejected by respondent No. 3 vide order, annexure P13, mainly on the ground that stone crusher does not fall within the definition of eligible industrial unit. The relevant extract of that order is reproduced below :

(3.) In the appeal filed by the petitioner against the order, anneuxre P13, the Joint Excise and Taxation Commissioner (Appeals), Ambala, observed that respondent No. 3 could not have indirectly nullified the eligibility certificate. She too declined to entertain the petitioner's prayer for exemption on the ground that the stone crusher falls within the negative list. This is clearly borne out from the following extracts of the order, annexure P15, dated July 13, 1997 passed by her :