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of <h1>Exemption Certificate Cancelled, Appeals Dismissed, Rules Deemed Constitutional. Appeal Allowed Without Pre-Condition.</h1> <h3>Haryana Vanaspati and General Mills Versus State of Haryana and Others</h3> The court upheld the cancellation of the exemption certificate due to business closure, dismissed appeals for non-payment of tax, deemed the rules ... - Issues:1. Cancellation of exemption certificate due to business closure and imposition of tax.2. Appeal against the cancellation and tax imposition.3. Retrospective application of rules and constitutionality.4. Recovery of tax amount and appeal hearing.Analysis:1. The petitioner-company was granted an exemption certificate under the Haryana General Sales Tax Act, but the Assessing Authority cancelled the certificate and imposed tax due to the closure of the business, citing rule 28-A(9)(i) and 28-A(10)(v) of the Rules. These rules allow cancellation if the business discontinues for over six months during the exemption period.2. The petitioner appealed the decision but failed to pay the tax instalments as directed by the Appellate Authority, leading to the dismissal of the appeal. Subsequent appeals were made to the Tribunal, challenging the financial burden and seeking installment payments, which were partially granted.3. The petitioner challenged the constitutionality of rules 28-A(9)(i) and 28-A(10)(v), alleging retrospective application. The court found the rules reasonable to prevent misuse of tax exemptions and not arbitrary or retrospective. Previous judgments cited were deemed irrelevant to the current issue.4. The court acknowledged the recovery of a significant portion of the tax amount through auctions and deposits, considering the petitioner's substantial losses. The Appellate Authority was directed to hear the appeal on merits without the condition of depositing the remaining tax amount, ensuring a fair opportunity for the petitioner.In conclusion, the court upheld the cancellation of the exemption certificate due to business closure, dismissed appeals for non-payment of tax, deemed the rules constitutional and reasonable, and allowed the appeal to be heard on merits without the pre-condition of tax deposit, considering the petitioner's financial circumstances.
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