2020 (10) TMI 956

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....yester film which started its operation in 2004 and was entitled for various benefits and tax exemption under the Special Economic Zone Scheme announced by the Central Government as well as the Government of India. The unit of the petitioner company which was established in 2004 is referred by the tax department as principal unit and in 2009 expansion was carried out and the unit was referred as expansion unit and in 2010 further expansion was carried out and the department referred the unit as diversified unit. The contention of the petitioner is that under the Madhya Pradesh Udyog Nivesh Samvardhan Sahayta Yojna, 2004 and 2010 vide notification dated 4/4/2005 and 13/12/2010, the State has made provisions for exemption from payment of entry tax to all the industries in the State subject to certain terms and conditions. As per the aforesaid notification the eligible Companies are entitled for 100% exemption in respect of payment of entry tax. The petitioner company submitted an application for grant of exemption of entry tax for its new principal unit, expansion unit and diversified unit as they are located in Special Economic Zone on 5/3/2013 and pursuant to the application submit....

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....igibility certificate to the petitioner in the year 2017 i.e., on 13/2/17. The respondent State has admitted that the Tax exemption was granted with retrospective effect i.e., 23/7/2004 to 22/7/2009, 24/11/2009 to 23/11/2014 and 9/5/2010 to 8/5/2015. The respondents in the return have stated that the petitioner is having an alternative remedy and the petitioner can very well prefer an appeal against the assessment orders passed from time to time in the matter levying entry tax. Reliance has been placed upon the judgment delivered in the case of Assistant Collector of Central Excise Vs. Dullab India and others reported in ( 1985 SC 330) and great emphasis has been laid upon the availability of alternative remedy. It has also been argued that the petition is hopelessly barred by delay and latches. The cause of action accrued to the petitioner on 13/2/2017 i.e., the date on which exemption was granted and, therefore, such a claim at a belated stage cannot be looked into. The respondent have stated that various assessment orders were passed on 19/5/2010, 27/4/2011, 30/4/2012 and 28/3/2013 under Section 13 of the Entry Tax Act read with Sec. 20 of the M.P. V.A.T. Act and the petit....

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....hy he did not seek an exemption against various assessment years in respect of which the assessment orders have been finalised and crystalised. The respondent have also stated that reopening of assessment cannot be done after five years in the light of the absolute statutory bar as provided under Section 21. Reliance has been placed upon the judgment delivered in the case of Singh Enterprises V/s Commissioner of Central Excise reported in (AIR 2008 SC 353); M/s. Nitco Tiles Ltd. Vs. Gujarat Ceramic Floor Tiles Mfg. Association and another reported in (2005) 12 SCC 454; Union of India Vs. Kirloskar Pneumatic reported in 1996 SCC (4) 453. The respondents have prayed for dismissal of the writ petition. 07. Heard learned Counsel for the parties at length and perused the record, the matter is being disposed of at the motion hearing stage itself with the consent of the parties, through Video Conferencing. 08. The undisputed facts of the case reveal that the petitioner before this Court is a Company registered under the Companies Act and is having a unit at Indore (Special Economic Zone), Pithampur. The petitioner Company started its production in 2004 and was entitled for various b....

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....x is payable or paid by the selling registered dealer; (ii) in respect of goods specified in Schedule II which after entry into a local area are sold outside the State or in the course of inter-State trade or commence or in the course of export out of the territory of India; (iii) in respect of goods specified in Schedule III imported from outside the State for consumption or use but which have been disposed of in any other manner; (iv) in respect of goods exempted from entry tax under Section 10; (v)... ... ... Section 10 of the M. P. Entry Act, 1976 reads as under : 10. Power to exempt. - The State Government may, by notification, and subject to such restrictions and conditions as may be specified therein, exempt, whether prospectively or retrospectively, in whole or in part : (i) any class of dealers or persons, or any goods or class of goods, from the payment of entry tax under this Act in respect of all or any of the local areas, for such period as may be specified in the notification; (ii) any dealer or class of dealers, from any provision of the Act as may specified in the notification : Provided that....

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....of the provisions of Order XXI of the Code of Civil Procedure, 1908 (5 of 1908), may be admitted after the prescribed period, if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period. Explanation.- The fact that the appellant or the applicant was misled by any order, practice or judgment of the High Court in ascertaining or computing the prescribed period may be sufficient cause within the meaning of this section. 14. The Madhya Pradesh Value Added Tax Act became applicable w.e.f. 1/4/2006 and Section 51 of the VAT Act provides that provision of Sec. 5 of the Limitation Act are applicable in respect of appeals, applications and revisions. The petitioner was certainly having a sufficient cause for condonation of delay, as exemption certificate was granted in the year 2017 and, therefore, the stand taken by the Department in respect of the limitation has got no meaning. The State of Madhya Pradesh has granted eligibility certificates to the petitioner for 100% exemption in respect of payment of entry tax for total 9 assessment years ie., 2004-05 to 2012-13 with retro....