These deductions stood disallowed to a unit allowing exemption for calculating the numberional sales tax liability as defined in Rule 28A 2 n , as a companydition for grant of exemption.
Since the exempted quantum of the assessee fixed at Rs.53.94 lakhs stood exhausted, the excess amount was ordered to be recovered by the Revisional Authority.
The assessee was number entitled to avail tax incentives beyond the period of exemption.
REPORTABLE Against the said order of the Revisional Authority, the assessee appealed before the Haryana Tax Tribunal.
The assessee availed benefit of exemption till 31.12.96 and from 1.1.97 the assessee switched over to the deferment tax payment scheme.
The numberional tax liability was deductible from the total exemption limit available to a dealer during the period of exemption.
The assessee was number entitled to REPORTABLE avail exemption of tax also beyond the maximum limit of tax determined and certified in his eligibility exemption certificate.
On exercising option of deferment, an entitlement Certificate No.07 for an amount of Rs.479.06 lakhs effective for the period 1.1.97 to 14.3.2002 was issued to the assessee in place of earlier Exemption Certificate.
Till 31.12.96 the exemption granted to the assessee was for an amount of Rs.53.94 lakhs.
To the extent the numberional tax liability exceeded the total exemption limit, the Department was entitled to order the recovery of the difference.
However, the assessment was revised by the Revisional Authority, Karnal, which assessed the Export Sales made during the period of exemption 1.4.96 to 31.12.96 at 4 for the purpose of Rule 28A of the 1975 Rules.
The assessment of the assessee for the year 1996 97 was finalized vide order dated 12.3.01 from the total gross turnover the Assessing Authority allowed the deduction of Export Sales against the Declaration Forms.
Vide Order dated 13.1.04 the Tribunal set aside the order of the Revisional Authority which was challenged by the State of Haryana Department by way of civil writ petition before the High Court of Punjab Haryana at Chandigarh.
Therefore, the scheme companytemplated tax limit and time limit.
The assessee was eligible to avail deductions from its gross turnover for transactions relating to inter State branch transfers or companysignment sales outside the State and sales made on companysignment basis or branch transfers within the State.
Assessee was granted Exemption Certificate No.116 for an amount of Rs.533 lakhs with effect from 15.3.95 to 14.3.2002 in terms of Rule 28A of the said 1975 Rules.
H. KAPADIA, J. Delay companydoned.
Leave granted.
They availed exemption from payment of sales tax under Section 13B of Haryana General Sales Tax Act, 1973 read with Rule 28A of Haryana General Sales Tax Rules, 1975 respectively.
