MANSUKH AND CO Vs. STATE OF HARYANA

JUDGEMENT

(1.) The appellant-writ petitioner is a partnership concern having its place of business at Industrial Site No. 49, Sector 6, Urban Estate, Faridabad (Haryana). It is engaged in the manufacture of Tarpaulm, Tents etc. It started its production with effect from 1.5.1971. At the time of its establishment and production it was outside the municipal limits. General exemption was granted by the State Government under Section 71 of the Punjab Municipal Act, 1911 from the levy of octroi tax. Vide notification dated 14.5.1970, all industrial units which fell outside the municipal limits at the time of their establishment were to be exempted from levy of octroi for a period of five years from the date of their coming into production. As far as new Industrial units located in the municipal limits were concerned these were to be exempted from the levy of octroi for a period of three years. These exemptions were admissible only to Small Scale Units i.e. where the investment in the Plant and Machinery was upto 7.5 lacs in Faridabad Ballabgarh belt. Since the appellant was a Small Scale Unit, a certificate was issued on March 13, 1973 in pursuance of the notification dated 14.5.1970 (which reference has been made above), exempting the appellant-firm from the payment of octroi tax from 1.5.1971 to 30.4.1976. It was further mentioned in the certificate that this exemption would be valid only for one year from the date of issue of the certificate and renewed thereafter for the remaining period from year to year.

(2.) Faridabad Complex came into being under the Faridabad Complex (Regulation and Development) Act, 1971 and the petitioner's factory became a part of this complex and came within the municipal limits. This was with effect from 7.4.72. An office order dated 29.10.74 (Annexure P-5) was issued by the Chief Administrator of the Faridabad Complex Administration that Haryana Government vide Memo dated 4.10.74 had made clarification that the maximum period for granting the exemption to the Industrial Units which were outside the municipal limits and subsequently included within the municipal limits would be eligible for exemption from payment of octroi in Faridabad-Ballabgarh belt to the extent of period of three year in case of the Small Scale Units. Since, according to the Administrator, the Unit of the petitioner had come into production on 1.5.1971, the three-year period expired on 30.4.74 and there could not be any exemption thereafter according to the clarification. It was this order that is impugned in the writ petition. The learned Single Judge dismissed the writ petition. Aggrieved by the judgement of the learned Single Judge, the writ petitioner has come up in appeal.

(3.) The learned Single Judge had relied on the provisions of Section 21(4) of the Faridabad Complex (Regulation and Development) Act, 1971, to hold that the State Government had the power to revoke exemption granted under sub-section (3) by an order published in the official gazette. Section 21(4) of the Act is in the following terms :-