NAHAR EXPORTS LTD. Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The petitioner prays for issuance of a writ of certiorari quashing order dated 25.08.1992 (Annexure P-6A), whereby the Assistant Excise & Taxation Commissioner, Ludhiana-3, has rejected the petitioner's application for exemption from payment of sales/purchase tax.

(2.) Counsel for the petitioner submits that on the date of filing of application for exemption, the Industrial Policy, dated 30.03.1989, did not place any prohibition on the petitioner's right to claim exemption. By way of a subsequent amendment to the relevant rules, notified on 27.12.1993, a negative list was enacted, which disentitled the petitioner to exemption from sales tax. As the petitioner had already purchased land, commenced process of setting up of a unit and applied for grant of exemption from sales tax on 27.07.1991, the application has been wrongly rejected, by reference to the amendment i.e., entry 43 of the Punjab General Sales Tax(Deferment and Exemption) Rules, 1991 (hereinafter referred to as 'the Rules). It is further submitted that as during pendency of the writ petition, entry 43 has been deleted pursuant to an amendment of the rules, dated 27.12.1993, with retrospective effect, the impugned order may be set aside and the writ petition may be allowed.

(3.) Counsel for the State of Punjab submits that on the date of consideration, entry 43 in Schedule-3 of the Rules, disentitled the petitioner to exemption from sales tax. The order dismissing the application was, therefore, rightly passed. The mere fact that by way of a retrospective amendment, applicable from 01.04.1989, entry no.43 has been deleted does not entitle the petitioner to any relief much less to pray that the impugned order may be set aside. It is further submitted that if it is held that retrospective amendment of the rules has to be considered in favour of the petitioner, the petitioner can only be granted exemption after he satisfies the authority concerned that he has not charged sales tax and if has charged sales tax would be required to remit the tax, so collected to the State.