9911796707
TMI Blog2016 (1) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... er in the facts and circumstances of the case, the learned Tribunal is justified in sustaining the cancellation of exemption certificate (Annexure A.2) by holding that there had been violation of Rule 2(xia) of the Exemption Rules which is a definition clause? iii) Whether the learned Tribunal could sustain the cancellation of the exemption certificate (Annexure A.2) without finding violation of a particular provision of the Act or the Rules made thereunder, casting an obligation upon the appellant to export 25% of the production in order to achieve the status of 'Export Oriented unit'? iv) Whether in the facts and circumstances of the case, Rule 8(1)(vi) has been rightly invoked? v) Whether the learned Tribunal is justified in holding that the appellant has violated the provisions of Rule 2 (xi-a) of the Exemption Rules when respondent No.3, the first appellate authority had not recorded any finding on this issue?" 3. A few facts relevant for the decision of the controversy involved as narrated in VATAP No.66 of 2009 may be noticed. The appellant established a unit at village Dhawankha Jagir, Jalandhar Road, Kapurthala to manufacture the Rubber/Leather Nylon Sandwic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de order dated 14.11.2002 (Annexure A- 3), he cancelled the exemption certificates under Rule 8(1)(vi) of the Rules for violating the provisions of Rule 2(xi-a) and under section 10(4) read with section 30-A of the PGST Act. It was also held that the appellant failed to export at least 25% of its products in the markets outside India during the aforesaid period 2000-01 and 2001-02 and, therefore, did not fulfil the minimum qualifying requirement of law as "Expert Oriented Unit" defined under Rule 2(xi-a) of the Rules. Aggrieved by the aforesaid order dated 14.11.2002 (Annexure A-3), the appellant filed appeal before the Deputy Excise and Taxation Commissioner (Appeals), Jalandhar Division, Jalandhar who remanded the case back to respondent No.4 with a direction to pass afresh order after considering the reply of the appellant vide order dated 23.05.2003 (Annexure A-4). After giving an opportunity of hearing to the appellant, respondent No.4 did not differ with his findings given in order dated 14.11.2002 (Annexure A-3) and cancelled the exemption certificate granted to the appellant vide order dated 30.08.2005 (Annexure A-5). Aggrieved by the aforesaid order dated 30.8.2005 (Annexu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted unit' means an industrial unit exporting at least twenty-five per cent of its products in markets outside India with minimum value addition of thirty-three per cent against direct receipt of foreign exchange or through merchant exporters including the Punjab Small Industries and Export Corporation or any other trading house registered as such with the Department of Industries, Punjab." 10. A perusal of the above provisions shows that export of at least 25% of the production by an 'Export Oriented Unit' at the markets outside India is compulsory. It has been categorically recorded by the assessing authority that in the assessment years 2000-01 and 2001-02, the appellant exported nothing outside India. In the assessment year 2001-02, the appellant exported only 1.68% of its products in the markets outside India. Further, after going through the said sale invoices and agreement, it was noticed by the assessing authority that the appellant had charged sales tax in the sale vouchers and also posted the same in the sale book under the respective heads i.e. "PST" (Punjab Sales Tax) and "CST" (Central Sales Tax) as the case may be. The Assessing Authority also found that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales tax under the Act and the Central Act from his customers and retained the same with him for illegal and fraudulent enrichment, with this scheme in mind he did not mention on the sale invoices/bills that his unit was exempt from payment of sales tax so that his customers could never know that their seller (this dealer) was exempt from payment of tax and could not charge and collect sales tax from them. The photo copies of some sale invoices are placed on the file. With this mode, he has been successful in charging and collecting tax from his customers. This is proved from the inter state sale order dated 1.6.1998 of M/s Sameswar Enterprises, Coimbatore in case of sister concern - M/s Kapurthala Hi-Tech Transbelt (P) Limited, wherein provision for charging 4% CST against 'C' form is agreed upon. Copy of this agreement is available on record. Similar orders are booked by the other dealer also. The dealer has charged sales tax under the Act and the Central Act in the sale vouchers and posted them in sale book under the respective heads "PST" (Means Punjab sales Tax) and "CST" (Central Sales Tax) as the case may be. In respect of every bill separate entry has been made i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
