MAHABIR INDUSTRIES Vs. STATE OF HARYANA

JUDGEMENT

(1.) This is a petition for quashing the decisions of the Lower Level Screening Committee (for short, "LLSC") and Higher Level Screening Committee (for short, "HLSC") declining the petitioner's prayer for correction in eligibility certificate dated November 9, 1992 issued by the LLSC under Rule 28A of the Haryana General Sales Tax Rules, 1975 (for short, "the Rules"). The other prayer made in the writ petition is for directing the respondents to revise the eligibility certificate and give consequential benefits to the petitioner.

(2.) The petitioner is a partnership firm engaged in the manufacturing and sale of solvent extracted oil, such as rice bran oil and de-oiled rice bran cakes. It is registered as dealer under the Haryana General Sales Tax Act, 1973 (for short, "the Act"). After commencement of production in its unit situated in Village Takhana, Block Nilokheri, District Karnal, the petitioner applied under Rule 28A of the Rules for issuance of eligibility certificate. The application of the petitioner was considered in the meeting of LLSC held on September 2, 1992 and on the basis of the decision taken in the said meeting, eligibility certificate dated November 6, 1992 (annexure P1) was issued in favour of the petitioner entitling it to claim exemption from payment of sales tax to the tune of Rs. 93,58,262 which could be availed within seven years, i.e., from April 8, 1992 to April 7, 1999. Thereafter, exemption certificate dated December 23, 1992 was issued by the competent authority. The petitioner availed full exemption up to first quarter of 1995-96, i.e., much before the expiry of the period of exemption.

(3.) After almost three years of having availed the benefit of exemption, the petitioner submitted application dated January 25, 1999 (annexure P2) to General Manager, District Industries Centre, Karnal, for correction of eligibility certificate annexure P1 by claiming that its unit is situated in notified backward area and in terms of the policy decision taken by the State Government on April 17, 1992 which was circulated vide letter dated April 28, 1992, it is entitled to exemption from payment of sales tax upto 150 percent of the fixed capital investment (Rs. 74,94,610) for a period of nine years because Nilokheri Block falls in Zone-A. Vide memo No. 951/SSS dated December 2, 1999, Deputy Excise and Taxation Commissioner, Karnal, recommended the petitioner's case for issuance of revised eligibility certificate. A similar recommendation was made by General Manager, District Industries Centre, Karnal, vide letter dated July 14, 2000 (annexure P4) sent to the Director of Industries, Haryana. However, the LLSC rejected the petitioner's application by observing that there is no provision in the Rules for amendment/correction of the eligibility certificate. This was conveyed to the petitioner by General Manager, District Industries Centre, Karnal, vide letter annexure P5 dated November 20, 2000. The appeal filed by the petitioner against annexure P5 was dismissed by HLSC in its 29th meeting held on May 16, 2002 and May 17, 2002. The decision of the HLSC was convoyed to the petitioner vide letter annexure P6 sent by Director of Industries, Haryana, through General Manager, District Industries Centre, Karnal.