Strict construction of withdrawal grounds barred cancellation of an eligibility certificate for non-production of land use approval.

An eligibility certificate under Rule 28A of the Haryana General Sales Tax Rules, 1975 could be withdrawn only on the specific grounds expressly listed in the rule, including fraud, misrepresentation, concealment of material facts, closure of business, or disposal of fixed assets affecting manufacturing capacity. Non-production of a change of land use certificate from the Town and Country Planning Department was not one of those grounds. The rule was therefore construed strictly, and once the certificate had been granted, it could not be withdrawn on an additional or implied basis not authorised by the statute. The withdrawal orders were quashed as unlawful and unsustainable.

---

---

Issues: Whether an eligibility certificate granted under Rule 28A of the Haryana General Sales Tax Rules, 1975 could be withdrawn on the ground that the industrial unit did not produce the certificate regarding change of land use from the Town and Country Planning Department, and whether the impugned withdrawal orders were sustainable.

Analysis: Rule 28A(8)(a) specifies the limited circumstances in which an eligibility certificate may be withdrawn, namely fraud, deceit, misrepresentation, concealment of material facts, discontinuance or closure of business for the specified period, or disposal or transfer of fixed assets adversely affecting manufacturing capacity. Non-production of a change of land use certificate does not fall within those statutory grounds. The provisions governing withdrawal of a tax-related certificate must be construed strictly, and withdrawal can be made only on grounds expressly authorised by the rule. While the authority may insist on such a certificate at the stage of grant, once the certificate has been issued, it cannot be withdrawn for a reason not contemplated by the rule.

Conclusion: The withdrawal of the eligibility certificate on the ground of non-production of the change of land use certificate was unlawful and unsustainable.

Final Conclusion: The writ petition succeeded, the impugned withdrawal orders were quashed, and the assessee obtained relief.

Ratio Decidendi: An eligibility certificate under a taxing statute can be withdrawn only on the specific grounds enumerated in the governing rule, and not for any additional or implied reason.

---