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2014 (11) TMI 879 - HC - VAT and Sales TaxRejection of applications for exemption from payment of sales tax - Punjab General Sales Tax Act, 1948 - Scope of the term 'Unit' - revenue submitted that petitioner being a registered dealer has been granted exemption from payment of sales tax amounting to rupees six crores vide exemption certificate dated June 3, 1993. The applications for availment of sales tax incentive in respect of other two branches of the petitioner have been rightly rejected as they are not a "unit" within the meaning of clause (xxvii) of rule 2 of the 1991 Rules. Held that:- The Department of Industries and Commerce having exercised its mind, and having granted the final eligibility certificate (which was valid at all material times), the Commercial Taxes Department could not go beyond the same. More so when the Commissioner, Sales Tax, had accepted the eligibility certificate issued to the appellant and had separately notified the appellant's eligibility for exemption under the 1993 G. O. In these circumstances the DCCT certainly could not assume that the exemption was wrongly granted nor did he have the jurisdiction under section 20 of the State Act to go behind the eligibility certificate and embark upon a fresh enquiry with regard to the appellant's eligibility for the grant of the benefits. - sales tax authorities had no jurisdiction to call in question grant of eligibility certificates issued by the District Industries Centre. - Decided in favor of assessee. Scope and purpose of the term 'Unit' - Scanning of the purpose with which the 1989 Policy and 1991 Rules have been formulated - Held that:- The definition of the term "unit" in a restrictive manner as has been sought to be canvassed by learned State counsel does not spell out from the reading of rule 2(xxvii) defining "unit" and justify the tenor of the policy and the rules framed. Under the circumstances, the State could not restrict the benefit of 1991 Rules to only one unit of the petitioner. - respondent No. 4 directed to issue eligibility certificate to the petitioner in respect of two other units as well - Decided in favor of assessee.
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