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2020 (3) TMI 8 - HC - VAT and Sales TaxReview application - area based exemption - expansion of the unit - application was rejected by the Higher Level Screening Committee (HLSC) on 25.5.2000 holding that the product i.e. desi ghee is covered under negative list of Rule 28B - HELD THAT:- The ground for rejection of exemption claim by HLSC could be sustained if the case was made out that any one of the conditions of proviso to Rule 28B(3)(a) of the Rules were not met. It was in that eventuality that application was to be dealt with under Rule 28B and the negative list would have relevance. Merely because by the time the application was submitted on 30.6.1999, Rule 28B of the Rules was inserted will not automatically bring the application for exemption under Rule 28B. If that is so, the proviso to sub-rule (3)(a) to Rule 28B would be rendered otiose. The proviso has extended the applicability of Rule 28A of the Rules. There cannot be any serious objection with regard to fulfilment of the three conditions as the unit had started commercial production on 15.4.1999 i.e. prior to insertion of Rule 28B of the Rules - Appellate Authority rightly allowed the appeal by considering the exemption application under Rule 28A of the Rules. The second contention that no land was purchased or taken on lease or rent is against the record. The diversified unit which started commercial production in 1995 was expanded and its capacity was extended from 10 metric tonnes to 14 metric tonnes. The land was already with the unit. It was not the case either before the HLSC that the land was not purchased or before the Appellate Authority, rather the departmental representative before the Appellate Authority conceded that three conditions of proviso to Rule 28B(3)(a) were fulfilled. Petition dismissed.
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