STATE OF RAJASTHAN Vs. MAHAVEER OIL INDUSTRIES

JUDGEMENT

(1.) At all material times the respondent was an industry engaged in the business of oil extraction and manufacture in the State of Rajasthan.

(2.) By a notification dated 23rd of May, 1987 issued in the exercise of its power) under Sec. 4 (2 of the Rajasthan Sales Tax Act, 1954. the appellant-State of Rajasthan notified a Sales Tax Incentive Scheme for Industries, 1987 (hereinafter referred to as the "incentive Scheme") under which it exempted (inter alia) new industrial units from payment of tax on the sale of goods manufactured by them for sale within the Stale of Rajasthan in the manner and to the extent and for the period as specified in that notification. The operative period of the Scheme under that notification was from 5th of March, 1987 to 31st of March, 1992, It was subsequently extended to 31/03/1997. The incentive scheme was applicable, inter alia, to new industrial units set up in areas mentioned in Annexure-A to the notification. Annexure-B sets out a list of industries which were not eligible for the benefit of the said notification. Oil extraction or manufacture was not listed in appendix-B. Hence this industry was eligible for benefits under the scheme of 23rd of May, 1987.

(3.) By another notification dated 23rd of May, 1987 issued under Sec. 8 (5 of the central Sales Tax Act the State government notified another sales tax incentive scheme for industries exempting (inter alia) new industrial units from payment of central sales tax on the inter-State sale of goods manufactured by them within the State of Rajasthan. Under this notification also it was provided that industries listed in appendix-B would not be eligible for the benefit of the scheme. Oil extraction or manufacture was not listed in appendix-B to this notification. Hence oil extraction units were eligible for exemption from Central Sales Tax in respect of inter-State sale of their goods.