SHANTI YARNS PVT LTD Vs. STATE OF HARYANA

JUDGEMENT

(1.) Whether the eligibility certificate granted to the petitioner under Rule 28A(2) read with Rule 28A(5) of the Haryana General Sales Tax Rules, 1975 (for short, "the Rules") could be withdrawn by the Lower Level Screening Committee without complying with the rule of audi alteram partem is the main issue which arises for determination in this petition filed under Article 226 of the Constitution of India.

(2.) The petitioner is engaged in the manufacture and sale of shoddy yarn, worsted yarn and acrylic yarn in the industrial unit set up by it at Kabari Road, Panipat. In 1995-96, it applied for grant of eligibility certificate under Rule 28A(5)(a) of the Rules. The General" Manager, District Industries Centre, Panipat, issued eligibility certificate vide letter annexure P-2 dated May 21, 1996 entitling the petitioner to claim tax exemption to the tune of Rs. 41,66,887. Thereafter, the Deputy Excise and Taxation Commissioner, Panipat, issued exemption certificate, annexure P-3. However, just after issuance of eligibility and exemption certificates, the Lower Level Screening Committee took a decision to withdraw eligibility certificate on the ground that the petitioner had set up the industry without obtaining permission for change of land use.

(3.) The petitioner challenged the decision of the Lower Level Screening Committee by filing an appeal which was dismissed by the Higher Level Screening Committee on the ground that it has failed to submit the change of land use permission/NOC from the Town and Country Planning Department.