SRI NEELAKANTESHWAR OIL INDUSTRIES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE petitioner is a registered dealer under the Karnataka Sales Tax Act, 1957 (in short "the Act" ). The petitioner established a new small-scale industrial unit for manufacture of edible oil and edible oil cake by crushing groundnuts, which went into commercial production on April 29, 1994.

(2.) BY Notification No. FD 239 CSL 90 (I), dated June 19, 1991, the Government of Karnataka, in exercise of its powers conferred under sub-section (1) of section 8-A of the Act, exempted with immediate effect the tax payable under the said Act in respect of the goods manufactured and sold by new industrial units described in column (2) of the table given in the said notification, located in the zones specified in column (3) of the table, to the extent indicated in column (4) and during the period specified in column (5) of the said table. Item (1) of the said table exempts tiny/small-scale/medium/large-scale industrial units situated in zone II (specified in annexure I to Government Order No. CI/138/spc/90 dated September 27, 1990), the extent of exemption being 100 per cent tax exemption without any monetary limit and the period of exemption being three years from the date of commencement of commercial production.

(3.) IN connection with the provisional assessment under section 12-B (2) of the Act, the assessing authority (second respondent) issued the following endorsement dated October 18, 1994 to the petitioner :