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2010 (10) TMI 967 - RAJASTHAN HIGH COURTOrder dated February 11, 1991 and the minutes of the meeting dated November 22, 1991 and has further sought direction to the District Level Screening Committee to grant eligibility certificate to the petitioner-company under the Sales Tax Incentive Scheme for Industries, 1987 challenged Held that:- Since the matter of evasion of tax was compounded on January 5, 1991, therefore, it could not be said that the petitionercompany had been penalised for avoidance or evasion of tax or any case of avoidance or evasion of tax was pending against it. The said compounding order dated January 5, 1991 was passed prior to the rejection of the application for the eligibility certificate on December 11, 1991. Therefore, the rejection of the application of the petitioner-company by invoking clause 7(e) is illegal. The issue of retrospective application of clause 7(e) of the notification dated May 23, 1987 is insignificant as per the aforesaid finding on the issue of compounding of tax evasion prior to the rejection of the eligibility certificate. In the result, the writ petition is allowed. The rejection order dated December 11, 1991, issued pursuant to the meeting dated November 22, 1991, is quashed and set aside. So far as denial of eligibility certificate to the petitioner-company is concerned, the case is remanded back to the District Level Committee with the direction to reconsider the case in the light of the aforesaid judgment, within a period of three months from the date of receipt of copy of this order
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