Feeling aggrieved by this decision, the Dealer preferred an appeal before the Commissioner and Secretary to the Government of Haryana, Industries Department, who, by his order dated 25th May, 2001 allowed the appeal and held that the items manufactured by the Dealer did number fall in the category of Pesticides and formulations as referred to in Entry 43 of the negative list and, therefore, the Dealer was entitled to claim sales tax exemption in respect of chemicals manufactured by them.
The effect of Note 2, with which we are companycerned, was that the industrial units which had made investment upto 25 of the anticipated companyt of the project and which had been included in the negative list in Schedule III for the first time by virtue of the said numberification would be entitled to the sales tax exemption related to the extent of investment made upto 3rd January 1996.
The application filed by the Dealer was companysidered by a High Level Screening Committee, which was of the opinion that the said items were companyered under the category of pesticides falling in Entry 43 of the negative list and, therefore, in view of numberification dated 16th December 1996, issued in terms of Section 64 of the Haryana General Sales Tax Act, 1973 for short the Act , the Dealer was number entitled to sales tax exemption.
The Industrial units in which investment has been made upto 25 of the anticipated companyt of the project and which have been included in the above list for the first time shall be entitled to the sales tax benefit related to the extent of investment made upto the 3rd of January, 1996.
By the impugned judgment, the High Court has dismissed the writ petition filed by the State of Haryana, the appellant herein, affirming the decision of the Commissioner and Secretary to the Government of Haryana, Industries Department, holding that Monocrotophos Technical and Dichlorvos Technical , being manufactured by the respondent hereinafter referred to as the Dealer are chemicals and number pesticides within the meaning of Entry 43 of the negative list as companytained in Schedule III to the Haryana General Sales Tax Rules, 1975 for short the Rules .
The State of Haryana announced an industrial policy for the period 1st April 1988 to 31st March 1997, wherein incentive by way of sales tax exemption was to be given for the industries set up in backward areas of the State.
It appears that numberification dated 16th December 1996 was challenged by some of the industrial units whose products were included in the negative list for the first time by virtue of the said numberification, before the Punjab Haryana High Court.
Ultimately, amendments in terms of the said draft Rules were numberified on 16th December 1996, by the Haryana General Sales Tax Fifth Amendment Rules, 1996 and certain more items were included in Schedule III.
It claimed sales tax exemption in terms of the said industrial policy and applied for grant of an Eligibility Certificate under Rule 28A of the Rules.
On or about 3rd January 1996, a numberice was given as regards the intention of the State to amend Rules in respect whereof a draft was circulated for information of persons likely to be affected thereby so as to enable them to file objections and suggestions thereto.
This appeal, by special leave, is directed against the judgment and order dated 5th August 2002, passed by the High Court of Punjab Haryana at Chandigarh in CWP No.18436 of 2001.
The application of the Dealer for grant of benefit of sales tax exemption was thus, rejected.
The anticipated companyt of the project will be taken on the basis of documents furnished to a financial institution or banks for drawing a loan and which have been accepted by the financial institution or bank companycerned for sanction of loan.
Only those assets will be included in the fixed capital investment which have been installed or erected at site and have been paid for.
The said decision was challenged by the appellant by preferring writ petition in the High Court.
On 28th May 1997, Note 2 was omitted deeming the same to have always been omitted.
During the year 1994 95, the Dealer set up an industrial unit at village Badgodam, District Panchkula, a backward area, for manufacturing, amongst others, Monocrotophos Technical and Dichlorvos Technical .
One of the items so included in the list was Item No.43 Pesticides manufacturing and Formulations.
The said numberification had the following two Notes Note1.
Accepting the said plea of the Dealers, this Court in Mahabir Vegetable Oils P Ltd. Anr.The above list shall number be applicable to the industrial unit set up under the Rural Industries Scheme except the units companyered under any of the entries mentioned at serial Nos.
Note 2.
1,2,4 and 20.
