TaxTMI 
TaxTMI 
2015 (3) TMI 476
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....fter quashing the order (Annexure P-35) seeking direction to respondents No.1 and 2 to grant sales tax exemption to the petitioner in terms of the Industrial Policy, 1989. 2. The Punjab Government in order to attract industrialists to establish new industries and for accelerating the rate of industrial development and also for generating employment opportunities particularly for unemployed rural youth had framed "New Industrial Policy, 1989" offering fresh incentives. 3. A notification (Annexure P-3) dated 30.3.1989 was issued to implement the said policy. Under the said policy, it was committed that sales tax exemption/deferment shall be admissible as per rules. As per the original notification, the industries engaged in expelling and cr....
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....tax exemption was issued to the petitioner by the General Manager, District Industries Centre, Patiala. Thereafter, the petitioner approached the Excise and Taxation Department for the grant of incentives. Such application of the petitioner was kept pending and incentives were not released in terms of the industrial policy. Representations (Annexures P-4 to P-26) were also made from time to time but to no avail. On 31.3.1995, a meeting was held under the Chairmanship of the Chief Secretary, Punjab to consider the case of the petitioner. The matter was referred to another Committee headed by the Secretary, Industries, Punjab. In a meeting held on 15.5.1995, officers of the Excise and Taxation, Industries and Law Departments participated, whe....
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....esulting in enforcing the company to re-schedule the loan instalments and also permission to sell the vacant land etc. Nonparticipatory attitude from the Punjab Financial Corporation also went against the petitioner. Instead of supporting and sustaining the unit, the Punjab Financial Corporation took over the possession of the unit, release of which came only on further undertakings given by the petitioner. 8. When prolonged silence of respondents No.1 and 3 in the matter of grant of exemption certificate forced the petitioner to file CWP No.17856 of 1997 in which the respondents on 17.4.1998 gave an undertaking that final decision on the issues would be taken within three months and further that no recovery of the sales tax arrears would ....
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....of 23.5.1991 became redundant. Consequent upon resistance of the Department of Excise and Taxation, the Industries Department once again had issued another notification dated 21.3.1994 (Annexure R-3) whereby the first notification of 23.5.1991 had been rescinded. It is averred that Annexure-II of the Industrial Policy of 1989 was amended on 23.5.1991. The petitioner was not entitled to avail the exemption without issuance of certificate of exemption in Form-ST (Deferment and Exemption) II by the Excise and Taxation Department in terms of Rule 3(2) of the Punjab General Sales Tax (Exemption and deferment) Rules, 1991 (hereinafter referred to as the 1991 Rules) (Annexure R-4). Such certificate concededly was never issued in favour of the peti....
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....ed that Form-C was obtained from the purchasing dealers of other States and that certificate was to be produced before the Assessing Authority for availing concessional rate of tax. Being in the negative list, the petitioner was to charge sales tax and was to make payment to the Department of Excise and Taxation. Asserting validity and legality of the impugned order, dismissal of the petition was sought. 12. We have heard counsel for the parties while going through the paper book. 13. Whereas the petitioner has claimed the impugned order (Annexure P-35) to be wrong and not binding and praying for quashing of the said order had sought mandate against respondents No.1 and 3 for granting sales tax exemption, the respondents have asserted val....
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....bility certificate issued by the Department of Industries could not have automatically entitled the petitioner for issuance of exemption certificate, which was to be issued by the Excise and Taxation Department, Punjab. 16. In fact, the petitioner could claim exemption from the payment of sales tax only on the basis of exemption certificate to be issued by the Excise and Taxation Department which was then to be attached along with e-return under Rule 3(2) of the 1991 Rules. When the unit of the petitioner was on the negative list in terms of the 1991 Rules and was not eligible for the grant of sales tax exemption, claim of the petitioner that it had satisfied all the requirements, is misleading. Perusal of paper book reveals that the appli....