PERFECT PEN PVT LTD Vs. STATE OF HARYANA

JUDGEMENT

(1.) This is a petition for quashing of the decision of the Higher Level Screening Committee (for short, "the HLSC") to grant eligibility certificate to the petitioner for deferment of the payment of tax instead of exemption. The other prayer made in the petition is for issuance of a direction to the respondents to issue certificate entitling the petitioner to claim sales tax exemption.

(2.) The facts of the case lie in a narrow compass. The application dated December 22, 1994 submitted by the petitioner in form S.T.-70 prescribed under Rule 28A(5) of the Haryana General Sales Tax Rules, 1975 (for short, "the Rules") for grant of eligibility certificate for tax exemption for a period of 7 years from October 6, 1994 to October 5, 2001 was considered in the meeting of the HLSC held on November 11, 1997, but instead of granting certificate for exemption, the committee directed the issuance of eligibility certificate for deferment of the payment of tax and on the basis of that decision, certificate, annexure P3, was issued by the Additional Director of Industries, Haryana. On receipt of the certificate, the director of the petitioner submitted representation dated February 4, 1998 to the Chairman, HLSC for correction of the certificate by pointing out that the application was for grant of eligibility certificate for sales tax exemption and not for deferment. This request was reiterated in the reminder dated November 6, 1998 sent to the Chairman, HLSC. In reply to the reminder, the Director of Industries, Haryana informed the petitioner, vide memo, annexure P5, dated December 16, 1998 that its representative had opted for deferment of the sales tax before the HLSC and, therefore, the eligibility certificate issued to it was in order. Thereafter, the petitioner sent another representation (annexure P8) to the Chairman, HLSC stating therein that its advocate Shri Y.P.S. Rana did not opt for deferment in the payment of tax. Along with the representation the affidavit of Shri Y.P.S. Rana, Advocate (annexure P9) was also sent to the Chairman, HLSC. The petitioner's representation was rejected in the meeting of the HLSC held on March 10, 1999. This was conveyed by the Director of Industries, Haryana vide letter, annexure P10.

(3.) In the meanwhile, the petitioner applied for grant of exemption in respect of the expansion carried out in the unit and on the basis of the decision taken in the meeting of the HLSC held on August 19, 1998, eligibility certificate, annexure P7, was issued entitling it to claim exemption from payment of sales tax in respect of the expanded part of the unit.