STATE OF RAJASTHAN Vs. GOPAL OIL MILLS

JUDGEMENT

(1.) THIS appeal by special leave is against the judgment dated January 12, 1993 of a division Bench (Reported in [1993] 89 STC 277 (Lokendra Industries v. State ).) of the Rajasthan High Court by which a bunch of writ petitions were allowed and the impugned notification dated May 7, 1990 withdrawing the benefit of a scheme granting exemption under the Central Sales Tax Act, 1956 and the State Sales Tax Act w. e. f. May 23, 1987 in respect of certain industries, was quashed. The material facts are these : The scheme under which the writ petitioners claimed certain exemption from payment of tax under the State Sales Tax Act and the Central Sales Tax Act came into effect on May 23, 1987. A notification dated May 7, 1990 was issued which had the effect of withdrawing that benefit in respect of certain industries specified therein both under the State Sales Tax Act as well as the Central Sales Tax Act. Thereafter, on July 26, 1991, another notification was issued by which a part of the notification dated May 7, 1990 was revoked resulting in restoration of the same benefit to those industries only under the Central Sales Tax Act. The benefit under the State Sales Tax Act, which was withdrawn by the notification dated May 7, 1990, was however, not restored. In the writ petitions filed in the High Court, challenge was made to the validity of the notification dated May 7, 1990. Those writ petitions have been allowed by the impugned judgment resulting in quashing of the notification dated May 7, 1990 and thereby restoration of the benefit of the earlier scheme in respect of both the enactments. The State of Rajasthan has come up by special leave against the judgment of the High Court.

(2.) AT the hearing of this appeal, learned counsel for the respondents stated on instructions at the very outset that the respondents confine their claim before us only to the withdrawal of benefit under the Central Sales Tax Act which benefit was restored w. e. f. July 26, 1991 by virtue of partial revocation of the earlier notification dated May 7, 1990 to that extent. In other words, the notification dated May 7, 1990 to the extent it relates to withdrawal of the benefit under the State Sales Tax Act is concerned is now not challenged by the respondents. Accordingly, the question for consideration in this appeal is now limited only to the claim for exemption under the Central Sales Tax Act.

(3.) THE claim of the respondents under the State Sales Tax Act being no longer pressed before us, and the facts relating to that being different since there was no restoration of that benefit, as was the case under the Central Sales Tax Act, the judgment of the High Court to that extent is set aside.