Sales tax exemption conditions and business closure rule upheld, with recovery of exempted tax and interest sustained.

Sales tax exemption under Section 13B of the Haryana General Sales Tax Act, 1973 read with Rule 28A of the Haryana General Sales Tax Rules, 1975 remained conditional on continued production and no closure of the unit for more than six months during the exemption period; on admitted long discontinuance of business, the exemption could not be retained. Rule 28A(9)(i) contained no exception for closure caused by circumstances beyond the assessee's control, and the Tribunal's findings were neither perverse nor erroneous. Recovery of the exempted tax with interest was therefore upheld, and no substantial question of law arose.

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Issues: Whether the assessee was entitled to retain sales tax exemption after discontinuance of business for more than six months, and whether recovery of the exemption amount with interest was valid.

Analysis: Exemption under Section 13B of the Haryana General Sales Tax Act, 1973 read with Rule 28A of the Haryana General Sales Tax Rules, 1975 was conditional upon continuation of production during the exemption period and not closing the unit for a continuous period exceeding six months. The unit had admittedly discontinued its business for a long period, and the statutory scheme under Rule 28A(9)(i) did not provide any exception for closure attributed to circumstances beyond the assessee's control. The findings recorded by the Tribunal were not shown to be perverse or erroneous, and no substantial question of law arose.

Conclusion: The assessee was not entitled to retain the exemption, and the recovery of the exempted tax with interest was upheld.

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