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2008 (8) TMI 551 - SC - VAT and Sales TaxWhether sub-rule (10)(v) of rule 28A in so far as it empowers the department to withdraw the tax exemption certificate was valid or not? Held that:- Appeal allowed. The proviso permits the dealers to explain satisfactorily to the DETC that the loss in production was because of the reasons beyond the control of the unit. The materials have to be placed in this regard by the party. The High Court seems to have completely lost sight of sub-rule (11)(b). In any event, we find that the High Court had permitted the authorities to go before the Screening Committee to get the eligibility certificate cancelled. Undisputedly that has been done, and the appeal against cancellation has been dismissed. It is stated that a writ petition is pending before the High Court. As in the instant case the writ petition filed by the respondent has been allowed without examining effect of sub-rule (11), the order of the High Court cannot be maintained. It is to be noted that in terms of clause (b) of sub- rule (11) if the conditions stipulated in clause (a) are not fulfilled, it shall be deemed that exemption/entitlement was not ever availed. Therefore, the High Court was not justified in its view that demand cannot be maintained.
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