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2015 (3) TMI 476 - HC - VAT and Sales TaxExemption in terms of the Industrial Policy, 1989 - Denial of exemption certificate - business carried on by it was in the negative list - Held that:- Whereas the petitioner has claimed the impugned order to be wrong and not binding and praying for quashing of the said order had sought mandate against respondents No.1 and 3 for granting sales tax exemption, the respondents have asserted validity and legality of the impugned order urging that the petition was frivolous. It is claimed that neither doctrine of equitable estoppel nor of legitimate expectations come to the rescue of the petitioner. - Merely because 'expelling and crushing' units were not in the negative list of the Industries Department, is not a fact which could entitle the petitioner for issuance of exemption certificate by the Department of Excise and Taxation as the matter was governed by the Punjab General Sales Tax Act, 1948. The Excise and Taxation Department was not to automatically follow decision taken by the Industries Department. Petitioner could claim exemption from the payment of sales tax only on the basis of exemption certificate to be issued by the Excise and Taxation Department which was then to be attached along with e-return under Rule 3(2) of the 1991 Rules. When the unit of the petitioner was on the negative list in terms of the 1991 Rules and was not eligible for the grant of sales tax exemption, claim of the petitioner that it had satisfied all the requirements, is misleading. Perusal of paper book reveals that the application of the petitioner for grant of exemption from sales tax was not lying pending but had remained actively under consideration of the respondents all through but the petitioner itself had rather been postponing such proceedings as it had not been producing account books despite having been asked to do so and had all through making endeavour for bringing the unit within the provisions of the 1991 Rules. Even the case of the petitioner was not considered favourably in the meetings held on 10.12.1993 (Annexure R-6) and on 31.3.1995 (Annexure R-7). In the meeting of 31.3.1995, the Department of Excise and Taxation had declined to accept the claim of the petitioner for sales tax exemption noticing that even the notification of 23.5.1991 of the Industries Department had already been withdrawn by the said department itself on 21.3.1994. It is, thus, noticed that at no stage, there was any representation made by the respondents acting upon which the petitioner could have been taken in for installing its unit. Rather, it is clear that unit of the petitioner was continuing on the negative list and was not entitled for grant of exemption certificate under the 1991 Rules. In this backdrop of facts and circumstances, even the doctrine of legitimate expectations does not enure for the petitioner. Consequently, the respondents were right in rejecting claim of the petitioner for sales tax exemption under the 1991 Rules vide order dated 3.7.1998 - impugned order of 3.7.1998 (Annexure P-35) is also appealable one under Section 20 of the Punjab General Sales Tax Act, 1948, whereas in the writ petition, the petitioner has specifically mentioned that no efficacious remedy of appeal is available against the impugned order - petition, being without any merit - Decided against assessee.
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