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2009 (11) TMI 872 - HIMACHAL PRADESH HIGH COURTIncentives and concessions announced by the State of Himachal Pradesh as per the Industrial Policy Scheme of 1999 and the notification dated July 23, 1999 issued for grant of incentives and concessions under the Himachal Pradesh General Sales Tax Act, 1968 questioned Held that:- If the argument made on behalf of the State is accepted then the result would be that the unit would have to pay sales tax on the entire sales of ₹ 61 lacs at the full prescribed rate whereas on sales up to ₹ 60 lacs it will not have collected any sales tax from the customers. It will make the units totally uneconomic and unviable. How can an assessee who has not collected sales tax be directed to deposit the sales tax? The only logical interpretation which can be given to sales tax notification to make it workable in accordance with the incentive policy is that the eligible units will be entitled to the exemption/concession up to the prescribed limit of ₹ 60 lacs and ₹ 45 lacs and if the turnover exceeds the aforesaid prescribed limits then it will have to pay full sales tax on the sales exceeding the prescribed limit. This will lead to certainty in the mind of the entrepreneur. He knows that up to ₹ 45 lacs or ₹ 60 lacs, he is entitled to either a concessional rate of sales tax or full exemption. Thereafter, he has to pay full sales tax on the sales exceeding over and above the prescribed limit.
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