Section 13B of the Haryana General Sales Tax Act

CST & VAT: Where assessee had established a unit for manufacturing of PVC granules and it had been granted exemption from tax for period from 22-4-1993 to 21-4-2000 and it availed of sales tax exemption, since assessee had discontinued business from January, 1997, it was liable to make payment of entire tax exemption availed of
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[2014] 49 taxmann.com 589 (Punjab & Haryana)
HIGH COURT OF PUNJAB AND HARYANA
Raju Plastics Industries
v.
State of Haryana*
AJAY KUMAR MITTAL AND MRS. ANITA CHAUDHRY, JJ.
C.M. NO. 23819-CII OF 2013
VATAP NO. 160 OF 2013 (O & M)
JANUARY  14, 2014
Section 13B of the Haryana General Sales Tax Act, 1973 read with rule 28A of the Haryana General Sales Tax Rules, 1975 - Exemption from tax - Certain class of industries - Assessee had established a unit for manufacturing of PVC granules - It was granted exemption from tax under section 13B read with rule 28A by exemption certificate dated 22-10-1993 for period from 22-4-1993 to 21-4-2000 - It started production and availed of sales tax exemption - It closed down manufacturing activities since January, 1997 and disposed of plant and machinery due to non availability of raw material -
Assessing Authority directed assessee to make payment of entire tax exemption alongwith interest chargeable as if no tax exemption was ever available to it - Whether since assessee had discontinued business from January, 1977, it had disentitled itself to retain advantage of exemption already availed of - Held, yes - Whether, therefore, assessee was liable to make payment of entire tax exemption availed of - Held, yes [Para 5][In favour of revenue]