TMI Blog2016 (9) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the industrial unit may avail after issuance of eligibility certificate is a stage subsequent to the issuance thereof. As has already been referred to by the petitioner that in terms of notification issued by the Government, an eligible industrial unit availing exemption from payment of tax may be entitled to purchase goods without payment of tax. In the overall scheme, the object may be to promote industrialisation. This Court is not opining on the issue as to whether the petitioner will be entitled to any benefit and how the benefit, if any available, under the Rules will be calculated, as this is not the stage for that as only issue under consideration before this Court is as to whether the petitioner can be denied issuance of eligibility certificate. The rejection of the case of the petitioner for issuance of eligibility certificate merely on the ground that the petitioner is manufacturer of tax free goods cannot be legally sustained. Petition allowed - issuance of eligibility certificate granted - decided in favor of petitioner. - C.W.P. No. 11835 of 2000 (O&M) - - - Dated:- 23-8-2016 - Mr. Rajesh Bindal and Mr. Harinder Singh Sidhu, JJ. For The Petitioner : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the same without payment of tax. Merely for the reason that the eligibility certificate has not been issued to the petitioner, it has been denied the benefit of purchasing raw material without payment of tax. On a query by the department, the petitioner had specifically mentioned certain goods which were to be used as raw material, some of which were tax free and some were taxable. 6. Learned counsel for the petitioner further referred to a communication dated 1.3.1993 from the Excise and Taxation Commissioner clarifying that the units manufacturing tax free products are entitled to benefit of exemption from tax. He further submitted that the aforesaid communication was superseded vide communication dated 31.7.1997 issued by the Commercial Taxation Commissioner. The Unit of the petitioner had come into production prior thereto. He further submitted that even if on a date, application for issuance of eligibility certificate is filed, the product being manufactured by that unit may be tax free but subsequently tax may be levied on that. But at that stage, it may not be entitled to file application. This is not the scheme of the Act and the Rules as for the purpose of issuance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larification itself was dated 31.7.1997. He further submitted that clarification dated 31.7.1997, as has been referred to by learned counsel for the State was not communicated to the petitioner therein. 10. Heard learned counsel for the parties and perused the paper book. 11. Relevant provisions of the Haryana General Sales Tax Act, 1973 and the Haryana General Sales Tax Rules, 1975, are reproduced hereunder:- Section 13-B of the Act (POWERS TO EXEMPT CERTAIN CLASS OF INDUSTRIES The State Government may, if satisfied that it is necessary or expedient so to do in the interest of industrial development of the State, exempt such class of industries from the payment of tax, for such period either prospectively or retrospectively and subject to such conditions as may be prescribed. Rule 28A(2)(f) of the Rules (f) ' eligible industrial unit means:- (i) a New Industrial unit or expansion or diversification of the existing unit, which - (I) has obtained certificate of registration under the Act; (II) is not a public sector undertaking where the Central Government held 51% or more shares; (III) is not availing the incentive of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt/ exemption certificate as may be opted as given ahead. PROVIDED that in the case of exemption the benefit shall extend to tax on gross turnover and in the case of deferment, it shall extend to tax on the taxable turnover of goods manufactured by the unit : xx xx xx Explanation 1: For the purpose of arriving at the limit of tax exemption/deferment, the national sales tax liability of the unit shall be taken into consideration. Notification dated 30.12.1987 LIST OF GOODS TAXABLE AT FIRST STAGE IN HARYANA (AS ON UPTODATE) Notn. No. S.O. 156/H.A.20/73/S.18/87 Dated 30th Dec. 1987 In exercise of the powers conferred by section 18 of the Haryana General Sales Tax Act, 1973 and all other powers enabling him in this behalf, and in supersession of Haryana Government, Excise and Taxation Department, Notification No. S. O. 98/H.A.20/73/2.18/73 dated the 5th May, 1973 as amended from time to time, the Governor of Haryana hereby directs that the tax under section 15 of the said Act be levied, with effect from the 1st date of January, 1988, at the first stage of sale on the following goods, namely :- 1. to 3 xx xx 4. Molasses 5. to 36 xx xx 37. Vegetable oi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up by him for manufacture of cattle feed came into commercial production on 23.5.1996. As intimated, the raw material required for manufacturing cattle feed was deoiled cake, rice bran, chemicals, barley, malt sprout bardana, molasses, etc. The application was considered by the Lower Level Screening Committee in its meeting held on 28.10.1997 and the same was rejected opining that the product being manufactured by the petitioner was already exempted from payment of sale tax, hence, not entitled to issuance of eligibility certificate. Reference was also made to the communication received from Commercial Taxation Commissioner dated 31.7.1997. The opinion of the Higher Level Screening Committee was also in the same terms. 13. Section 13-B of the Act empowers the State Government to exempt any class of industry from payment of tax in the interest of industrial development of the State. Prior to the amendment in Section 13-B of the Act vide Act 13 of 1989, the words used were 'from payment of sales tax', however, the word 'sales' before the word 'tax' were omitted. 14. In exercise of powers conferred under the aforesaid section, Rule 28-A of the Rules was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial consumed by the unit 7. Corrugation of G.P./B.P. Sheets 8. Caustic soda units except those based on membrance cell technology. 9. Simple fabricated items like trunks, buckets, gamlas, windows, grills, trussess, etc. 10. Ethanol (Ethyl Alcohol) based industries except nonmolasses alcohal industries. 11. Khandsari units 12. Bricks made of ordinary earth including mechanized bricks where the ordinary of earth content is more than 50%. 13. Thinners. 14. Induction and ARC Furnance with more than 0.5 MT capacity. 15. AAC/ ACSR conductors. 16. L. P. Gas cylinders 17. Non-graded C.I. Casting. 18. Roller Flour Mills. 19. Re-rolling of mild steel, re-rolling of special steel like EN-42 is not covere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rected at site and have been paid for. The anticipated cost of the project will be taken on the basis of documents furnished to a financial institution or banks for drawing a loan and which have been accepted by the financial institution or bank concerned for sanction of loan. 17. A perusal of the aforesaid list shows that the neither the product being manufactured by the petitioner, namely, cattle feed, nor the unit engaged in manufacturing of tax free products, is mentioned therein. Meaning thereby there is no bar as such to issue eligibility certificate to a unit engaged in manufacture of cattle feed or for that matter any product which may be tax free on the date, the eligibility certificate is issued, in case specifically not mentioned in the negative list. It merely be noticed here that the product which may be tax free today may be taxable tommorow. 18. The contention raised by learned counsel for the State that the benefit of exemption from payment of tax being available on the txable turnover and there being no taxable turnover of the petitioner, it is exercise in futile to issue him eligibility certificate, is merely to be noticed and rejected, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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