HARMAN BAWA P LTD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) WHAT is challenged in this petition filed under Article 226 of the Constitution is the order dated December 8, 1993 passed by the Assistant Excise and Taxation Commissioner, Patiala rejecting the application of the petitioner for the grant of exemption from payment of sales tax for the year 1991-92. An appropriate writ or direction is also sought for staying the recovery of sales tax on the basis of demand raised in pursuance of the order of assessment passed by the assessing authority on 15. 2. 1994.

(2.) IN pursuance to its published industrial policy allowing certain incentives like exemption from payment of sales/purchase tax to new units with a view to promote industrial development in the State, the Government of Punjab has framed the Punjab General Sales Tax (Deferment & Exemption) Rules, 1991 (for short, the Rules) which came into force with effect from 1. 4. 1989.

(3.) IN accordance with the Rules, the petitioner applied for exemption from payment of sales tax for the year 1991-92 along with the eligibility certificate and other documents. It then transpired that during this year the petitioner had, in contravention of the eligibility certificate, conducted branch transfers/consignment sales. As this was in violation of rule 3 (1) (iii) of the Rules (as reproduced above), the application for the grant of exemption certificate was rejected by the Assistant Excise and Taxation Commissioner, Patiala as per his order dated December 8,1993 (Annexure P5 with the writ petition ).