BRIGHT PACKAGING PVT LTD Vs. ADDITIONAL DEPUTY COMMISSIONER

JUDGEMENT

(1.) PETITIONER is an assessee under the provisions of the Karnataka Sales Tax Act, 1957 (for short, "the Act"). PETITIONER has been assessed to certain tax liability for the accounting period 2003 and 2004 dated December 27, 2004 as per annexure A. PETITIONER is disputing the liability to tax under this order on the premise that while assessing, the petitioner has not been extended the various concessions that has been extended to persons like petitioner on the basis of various Government Orders that had been issued from time to time particularly G.O. No. CI 30 SPC 96, dated March 15, 1996 package of incentives and concessions for the years 1996 to 2001; that in terms of the concessions given under this notification for the kind of business that the petitioner is carrying. The petitioner contends that it is entitled for such benefit for a period of six years from the date of production; that the assessing authority has not extended this benefit in view of a subsequent Notification No. CI 30 SPC 96, dated March 15, 1996 package of incentives and concessions for the years 1996 to 2001; which is a notification under Section 19C of the Act granting exemption, etc.

(2.) SUBMISSION of Sri M. N. Shankaregowda, learned Counsel for the petitioner is that the subsequent notification is at variance with the earlier notification. In view of the subsequent notification being at variance, persons like the petitioners who could have got the concession on establishing industries or setting up their units are deprived of the benefit which the earlier notification had promised and that portion of the subsequent notification which is inconsistent with the earlier G.O. requires to be quashed.

(3.) IN so far as the incentives provided to new industrial units set up in notified areas and also additional investments in such units are concerned even the policy statement extending sales tax concessions to new units is concerned as indicated in Clause (d) of sales tax concession at item 5 of the different items of concessions/benefits, itself indicates the manner in which additional production attributable to additional investment is to be computed, which additional production alone enjoys the tax concession and a reading of the exemption notification dated November 15, 1996 issued under Section 19C of the Act, prima facie indicates that the subsequent notification seeks to extend the benefit of exemption to the additional production attributable to the additional investments. Computed on the same basis as had been indicated in the earlier Government Policy statement. That is to say the restriction if any as understood by the petitioner said to be present in the latter notification is not, a restriction brought in by the notification dated November 15,1996 but a restriction or to be precise the mode of computation of the tax concession as had been indicated even in the policy statement of the Government issued in terms of the G.O. dated March 15, 1996.