MITTAL POLYPACKS PVT LTD Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) The question in these appeals is whether the appellants are entitled to the benefit of the incentive scheme which had been brought into effect by the State of Bihar in 1995. Under Bihar's industrial policy, with a view to attracting capital investment in the State and accelerate the economic development and also generation of employment in the State, it was decided to grant various perquisites to certain industries setting up business within the State. Amongst the perquisites so envisaged was giving of industrial LT/HT electricity connection on a priority basis. Another perquisite envisaged was the grant of relief from sales tax. The beneficiaries would inter alia, be the new industrial units which were defined for the purpose of the policy as industrial units which had come into operation between 1.09.1995 and 31.08.2000.

(2.) In pursuance to this policy, a notification was issued on 22.12.1995 (hereinafter referred to as "the first notification") u/s. 7(3) of the Bihar Finance Act, 1981 . Under this notification, exemption was granted in respect of raw materials used by new industrial units as well as units undertaking expansion/diversification and modernisation provided the new industrial unit or the expanded unit commenced production in between 1.09.1995 and 31.08.2000. A similar notification was issued granting exemption in respect of finished products of such industries. The first notification also provided for the procedure for the grant of certificate of tax exemption. The only other relevant clause of this notification is cl. 1(a) whereby a new industrial unit was defined not only as one which had commenced production in between 1.09.1995 and 31.08.2000 but one which had obtained a licence/letter of memo/letter of intent of registration certificate from the Industries Department/Industrial Area Development Authority/Director of Industries or a competent authority of the Government of India.

(3.) M/s Beekay Steel Limited (whose appeal is taken up as the lead matter) applied for and obtained an industrial licence from the Government of India on 18.10.1995. However, it could not commence production within the period 1.09.1995 to 31.08.2000. According to the appellant, this was because the electricity connection which had been promised to the industries setting up business within the State had not in fact been granted to the appellant within the aforesaid period despite the appellant having taken every step to obtain the same.