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2014 (3) TMI 865 - SC - VAT and Sales TaxValidity of High Court Order - Permissibility of clubbing production - Whether production of two different units can be clubbed to meet the requirement of the Rule - Rule 28A (11) (a) (i) of Haryana General Sales Tax Rules, 1975 - Benefit of tax exemption during concession period – Failure to maintain the requisite production - Held that:- The conditions which are imposed have been enumerated in the Rule 28A 11(a) I(ii) to the effect that in the event of non-maintenance of the quality of production after the expiry of the exemption, the assessee has to pay the tax benefit availed with interest - Rule 28A(11)(b) clearly stipulates that in case of violation of clause 11(a)(i) of Rule 11, the assessee shall be liable for making, in addition to the full amount of tax-benefit availed of by it during the period of exemption/deferment, with interest chargeable. The production of the beneficiary unit had failed to fulfil the stipulation incorporated in Rule 28A 11(a)(i) - The production of the expanded unit has been computed and clubbed with the first unit to reflect the meeting of the criterion - The expanded capacity had been created to show that the rate of production is maintained but it is fundamentally a subterfuge - The authority has also taken into consideration the different items produced and how there has been loss of production of EPBT in the first unit - The High Court has failed to appreciate the relevant facts and without noticing that the assessee had clubbed the production of the units, lancinated the orders passed by the forums below. Clubbing is not permissible - It amounts to a violation of the conditions under Rule 11(a)(i) of Rule 28A and the assessee has to pay the full amount of tax benefit and interest -The appeal is allowed and the judgment and order passed by the High Court is set aside and those of the tribunal and other authorities are restored – Decided in favour of Revenue.
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