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2014 (3) TMI 822 - SUPREME COURTViolation/Breach of conditions of tax exemption - restriction on stock transfer outside state while availing exemption – Refunding of amount availed by tax exemption/deferment of tax under the exemption scheme - u/s 13–B of the Haryana General Sales Tax Act r/w Rule 28-A – Held that:- The assessee-company had availed benefit of the sales tax exemption under the Exemption Scheme issued by the State Government - The Eligibility Certificate provides for certain conditions to be complied by the assessee-company - Condition No. 7 provides that the certificate can be cancelled if there is contravention of any condition mentioned in the certificate or Rule 28-A - In the show cause notice it is specifically alleged that the assessee had dispatched good on consignment basis during the assessment period 1995-1996, 1996- 1997 and 1997-1998 and thus the assessee has breached Sub-rule 11(a)(ii) of the Rule 28-A, which prescribes that the assessee having availed the benefit of tax exemption shall not make sales outside the State for next five years by way of transfer or consignment of goods manufactured by it - Since the assessee did not dispute the specific contravention by the assessing authority after cancelling the exemption certificate issued has quantified the tax liability and the interest - The order so passed is in consonance with the scheme of exemption notified by the State Government and also in accordance with the rules prescribed under Section 13B. Validity of High Court Order - Held that:- High Court while allowing the petition has proceeded on a wrong assumption, that, the AO has levied tax on inter-state sales and on consignment transfer and accordingly has quashed the assessment order - Judgment and order of the High Court cannot be sustained, impugned order set aside – appeal allowed – Though assessing authority has completed the assessments in the light of the judgment and order passed by the High Court - Since the judgment and order of the High Court is set aside, the assessing authority is directed to pass fresh assessment order for the periods in dispute after affording opportunity of hearing to the assessee - Decided in favour of Revenue.
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