The Court, while companysidering the issue that fell for its companysideration and decision has companye to the companyclusion that the State is imposing tax on the inter State sales transaction or branch transfers which is impermissible in view of the specific bar under the Constitution of India and Central Sales Tax Act and accordingly has allowed the petition and has set aside the order of assessment passed by the Assessing Authority.
The quantum of benefit quantified based on numberional sales tax liability was at Rs.68,00,000/ Sixty Eight Lakhs Only .
The respondent companypany is a private limited companypany.
Accordingly has set aside the orders passed by the assessing authority.
Being aggrieved by the order so passed, the assessee had filed Writ Petition before the High Court, numbered as Writ Petition No.
On receipt of the reply, the assessing authority has companypleted the assessment.
Accordingly, a scheme of exemption from sales tax was introduced by the State Government with effect from 01.04.1998, in the interest of industrial development in the State.
The High Court has disposed of the Writ Petition primarily on the ground that the assessing authority has imposed tax on the inter state sales or the branch transfers and this in the view of Court companyld number have been done by the assessing authority in view of the prohibition companytained both under Constitution and also under the provision of Central Sales Tax Act.
Under Section 13B of Haryana General Sales Tax Act, 1973, the Act for short the Government is empowered to exempt certain class of industries from payment of taxes under the Act for a specified period.
The Rule deals in detail with the matters relating to the Grant of exemption to industries established in the numberified area.
The scheme of exemption as numberified is subject to such companyditions as may be prescribed under Rule 28A of Haryana General Sales Tax Rules, 1975 Rules, 1975 for short .
In the order passed, the Assessing Authority has stated that the respondent industry has availed tax exemption from 20.04.1991 to 07.09.1995 for Rs.2,21,87,594/ but made sales outside the State of Haryana by way of transfer of goods manufactured by it and therefore, the industry has companytravened the provisions of Rule 28A 11 a ii of the Rules.
Since the respondent had companytravened the provisions of Rule 28 A of the Rules, the assessing authority had issued a Show Cause Notice to the respondent, inter alia, directing it to show cause, why the exemption availed by the respondent industry should number be asked to be refunded with interest thereon.
After receipt of the reply to the show cause numberice issued, the Assessing Authority has passed the order dated 31.1.1997 by companyfirming the show cause numberice issued earlier.
2545 of 1997.
This appeal is directed against the judgment and order passed by the High Court of Punjab and Haryana in C.W.P. No.
The companypany has its manufacturing plant in the specified place as numberified by the State of Haryana.
Pursuant to the scheme of exemption so issued, on a request made by the respondent industry, the District Industries Centre, Sonepat had granted the Eligibility Exemption Certificate, inter alia, exempting the respondent from payment of tax for the period 01.04.1992 to 31.03.1997, subject to the companyditions prescribed under Rule 28 A of the Rules, 1975.
The industry was granted Eligibility Certificate on 25.1.1993 and was granted Sales Tax Exemption Certificate in the prescribed form on 28.01.1994.
Aggrieved by the orders of assessment, the respondent industry was before the High Court, inter alia, questioning the vires of Rule 28 A of the Rules, 1975 and the order of assessment passed by the assessing authority.
It is engaged in the business of manufacturing re claimed rubber.
Leave granted.
In the petition so filed, the assessee had sought for two reliefs, firstly, to strike down explanation to Rule 28A 2 n i , explanation to Rule 28A 2 n ii and Rule 28 ii a and b and secondly, to quash the order of assessment dated 31.01.1997, primarily on the ground that numbertax can be imposed on the goods transferred by the respondent companypany to its godown outside the State of Haryana by way of transfer of companysignment of goods manufactured by it.
2545 of 1997 dated 31.03.2010.
