VIVIDH MARBLES PRIVATE LIMITED Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) LEAVE granted. The State of Rajasthan pursuant to its industrial policy formulated 'Sales Tax Incentive Scheme, 1987' (for short, '1987 Scheme') and 'Sales Tax New Incentive Scheme for Industries, 1989' (for short, '1989 Scheme). In terms of 1987 Scheme exemption from payment of sales tax of 100% was provided. 1989 Scheme which was notified in the Official Gazette on or about 06.07.1989 was given retrospective operation with effect from 05.03.1987. It was to remain in force upto 31.03.1998. Sub-clause (b) of Clause (1) of 1989 Scheme reads as under:

(2.) APPELLANT herein was eligible to obtain the benefits of the said Industrial Policy both under 1987 and 1989 Schemes. It, however, opted for 1989 Scheme, wherefor an application for grant of sanction of eligibility certificate was filed before the Manager, District Industries Centre, Rajsamand on 01.04.1995. Indisputably, the eligibility certificate was to be granted by the Industries Department of the State. The said certificate was granted on 07.12.1996, pursuant whereto exemption from tax liability was limited to 75%. Contending, however, that it had altered its position on a representation made by the State that 1987 Scheme would be applicable in its case, the appellant alleged that it had not realized sales-tax from its customers. In support of the said contention, it inter-alia relied upon an order of sanction of eligibility for grant of exemption/deferment issued by the Member Secretary of the Department to the Commercial Taxes Officer, Rajsamand, which is in the following terms:

(3.) THE mistake of the Assessing Authority, however, having been discovered, the appellant was issued with a notice to show cause as to why it should not pay the balance sales-tax on 25% of its turnover. A writ petition filed thereagainst by the appellant has been dismissed by reason of the impugned judgment. Mr. M.L. Verma, the learned Senior Counsel appearing on behalf of the appellant, would submit that in view of the representation made by the respondent, pursuant whereto or in furtherance whereof the appellant had not collected any tax from the customers, the impugned order cannot be sustained. In any event, it was urged that no penalty or interest should be levied on the said amount.