JUDGMENT

Dr. Mukundakam Sharma, J. —

1. Leave granted.

2. The issue that falls for our consideration in this appeal is whether the Respondent is entitled to the benefit of Sales Tax exemption on the entire investment made by them in setting up the industrial unit i.e. Solvent Extraction Plant, or on the investments made up till 16.12.1996, the date on which the exemption granted under Rule 28A of the Haryana Sales Tax Rules (“HSTR” for short) was withdrawn by the State by putting the Solvent extraction plant in the negative list.

3. The basic facts which are not in dispute, are as follows:-

The State enacted the Haryana General Sales Tax Act, 1973 (for short “the Act”). Section 64 of the Act provides for rule-making power. The said provision was amended by inserting sub-section (2-A) therein which reads as under:

“64. (2-A) The power to make rules under sub-sections (1) and (2) with respect to clauses (ff) and (oo) of sub-section (2) shall include the power to give retrospective effect to such rules i.e. from the date on which policy for incentives to industry is announced by the State and for this purpose Rules 28-A, 28-B and 28-C of the Haryana General Sales Tax Rules, 1975, shall