MYSORE CHIPBOARDS LIMITED Vs. STATE OF KARNATAKARESENTED

JUDGEMENT

(1.) IN all these cases since the question of law and fact are common they are taken up together and disposed of by this common order.

(2.) IN all these cases petitioners are the Assessees under the Karnataka Sales Tax Act (for short 'kst Act') and Central Sales Tax Act (for short 'cst Act' ).

(3.) THE Government of Karnataka has issued Industrial Policy 1996-2001 in GO. No. CI 30 SPC 96, dated 15-3-1996 offering tax concessions and incentives to new industrial units and also to the existing units making investment in expansion/modernisation/ diversification. Eligible industrial units were extended the option availing incentives in the form of sales tax exemption (KST/cst) or in the form of sales tax deferral (KST/cst ). The said Policy was implemented by notification under Section 19-C of the KST Act in FD 32 CSL 96 (I) dated 15-11-1996 and under Section 9 (2) of the CST Act read with Section 19-C of the KST Act in No. FD 32 CSL 96 (II) dated 15-11-1996. Petitioners had applied and were granted sales tax exemption certificate. As per the said certificates of exemption, the petitioners were entitled for sales tax exemption both KST and CST under the expansion programme of sale of finished products for a period of five years and limited to 80% of the investment made on fixed assets. The quantum of exemption from the tax was granted in terms of Industrial Policy to the Industrial Units concerned. In each assessment year, the taxable sales coming under the purview of the KST Act, 1957 and taxable sales coming under the purview of the CST Act, 1957 and the amount of tax payable thereon was computed. The total amount thus arrived at is set off against the total quantum of exemption granted to the industrial unit and the balance is carried forward to the next year and so on, until the exemption to the full extent is availed or until expiration of the period of eligibility.