9911796707
TMI Blog2024 (5) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby Special Package of Incentives for Information Technology Industry was formulated for the defined new units and the policy was valid for a period of two years from the date of notification. The petitioner was granted Certificate of Registration dated 20.09.2000, which was valid from 07.09.2000. The petitioner applied for grant of Sales Tax Exemption under the Information Technology Policy on 12.07.2001. Vide Certificate dated 30.07.2001 (Annexure P. 5), the petitioner was certified to be eligible for grant of incentives of Sale Tax exemption for a period of 120 (One hundred twenty only) months, in terms of Notification dated 15.03.2000. 3. Vide Certificate dated 26.09.2001, the petitioner was granted exemption from payment of tax in accordance with the provisions of the Punjab General Sales Tax (Deferment and Exemption, Rules, 1991) for the period from 07.09.2000 to 06.09.2010. The relevant portion of Exemption Certificate dated 26.09.2001 (Annexure P. 7) is reproduced as under: "It is hereby certified that the industrial unit in the name and style of M/s OST Electronics Ltd situated at D-90, Industrial Area address Phase VII, SAS Nagar (Mohali) under the Punjab General Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Notification dated 15.03.2000, the petitioner applied for and was granted Certificate of registration on 20.09.2000. He submits that the petitioner was granted Certificate of exemption on 30.07.2001 but its exemption Certificate was withdrawn on 28.06.2002. He further contends that the Notification dated 16.09.2004 is defective, since it is not in consonance with the Industrial Policy, 2000. He further submits that the action of the respondents in imposing a condition in the Policy restricting the exemption by fixing the date (30th April, 2000) by which the effective steps were to be taken, in the Notification dated 16.09.2004 is wholly unreasonable. He further submits that the impugned notification is in violation of Policy named as "Special Package of Incentives to Information Technology Industry, 2000" and therefore, the same is liable to be quashed. He relies on para 7 of judgment of Hon'ble Supreme Court reported as State of Bihar and Others vs. Suprabhat Steel Ltd and Others (1999) 1 Supreme Court Cases 31. The same is reproduced hereinbelow: "Coming to the second question, namely, the issuance of notification by the State Government in exercise of power under Section 7 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Notification dated 26.04.2000 vide which the Punjab Industrial Incentive Code under the Industrial Policy, 1996 notified on 01.06.1996 was amended. He further submits that the Notification dated 16.09.2004 (Annexure P. 16) has been issued by the State Government by virtue of powers conferred by the State Legislature, therefore the Notification dated 16.09.2004 issued by the Department of Excise and Taxation is in consonance with the Notification dated 26.04.2000 issued by the Department of Industry and Commerce. 10. We have heard learned counsel for the parties and perused the paper book with their able assistance. 11. A perusal of Notification dated 15.03.2000 shows that the Special Package of Incentives to Information Technology Industry for development of Information Technology Industry in the State of Punjab was formulated which was valid for a period of two years from the date of Notification. Relevant portion of the Policy is reproduced hereinbelow: "Notification. 1. Definition (I) & (ii) xxxx xxxx 2. I. (a) (b) xxxx xxxxx II. Exemption/deferment from Sales Tax a) Exemption/deferment from Sales Tax (including Punjab Sales Tax & Central Sales Tax & Pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Punjab in its reply has relied upon Notification dated 26.04.2000 by stating therein that in Notification dated 26.04.2000, the condition is imposed that the units which may take the effective steps as mentioned therein by 30.04.2000 will be eligible for grant of Sales Tax Exemption/deferment. The relevant portion of the notification dated 26.04.2000 is reproduced as under: "Unit which may have taken following effective steps or which may take these effective steps by 30th April, 2000 will also be eligible for grant of Salex Tax Exemption/Deferment provided such units come into production by 30th June 2002." 15. It would be relevant to reproduce Notification dated 26.04.2000, which reads as under: "The Governor of Punjab is pleased to make the following amendments with regard to sales tax exemption or deferment under the "Punjab Industrial Incentive Code under the Industrial Policy, 1996" notified vide No. IncII/15/43/96-5/IB/4176 dated 01.06.1996, as under: Sales Tax Exemption of Sales Tax Deferment No sales tax based incentive i.e Sales Tax Exemption or Deferment from the Sales Tax will be granted to any new industrial unit or existing unit undertaking expansion except the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of next five years. Notwithstanding anything contained in any other provision of these rules. (I) No sales tax based incentives that are sales tax exemption or deferment from the sales tax will be granted to any new industrial unit or existing unit undertaking expansion except the unit, which had taken the following effective steps by 30th April 2000. (a) Registration with Department of Industries and Commerce or with any other designated Department including in the case of licensed items, the obtainment of such industrial license. (b) Purchase of land for the project. (c) Submit loan application with the Finance Institution." Provided such units had come into production by 30th June 2002." 18. A perusal of the above mentioned amendment shows that though the Rules were amended retrospectively w.e.f 15.03.2000 i.e the date of Notification regarding "Special package of incentives for Information Technology Industry" but a new condition with respect to the date (30.04.2000) for taking effective steps regarding registration etc has been imposed in sub para V of Rule 2 of the Amendment Rules. 19. A bare perusal of the record shows that after issuance of "Special Pac ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
