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2009 (6) TMI 1007 - HC - VAT and Sales TaxSales tax benefits - package scheme - eligibility certificate - Circular no.2 of 1998 dated 17.1.1998 - Certificate of Entitlement dated 16.1.2001 - Held that: - from 01.12.2000 onwards the production to the extent of 78.95% of the total production shall be apportioned as production of a Unit in Expansion relevant for this Entitlement Certificate. The Entitlement Certificate is based on the ratio of investments for prorata computation, the benefits shall be available till the time period or the monetary ceiling whichever gets exhausted early. The production to the extent of 21.05% shall be apportioned to the Existing Unit. Corresponding to this production at 21.05% when the sales takes place the liability for payment of taxes shall be discharged by making payment of taxes into Govt. Treasury and the same shall be admitted in returns furnished thereafter. The same proportion is available for procuring raw-material without payment of taxes to suppliers on finishing declarations in respect of Expansion Unit. The Deputy Commissioner of Sales tax could not impose the conditions as per paras 4 and 5 of the Trade Circular dated 17.1.1998 and the above referred conditions in the Entitlement Certificate and, therefore, to that extent the said Circular and the conditions in the Certificate of Entitlement are liable to be set aside. Appeal allowed - decided in favor of appellant.
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