SOUTHERN REFINERIES LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner, a medium scale industrial undertaking, is before this court being aggrieved of exhibit P9 order passed by the Government on April 7, 2008, turning down the request to consider the extension of exemption from the Kerala General Sales Tax Act and the concessional rate of Central sales tax till March 31, 2006, without any ceiling and also being aggrieved of exhibits P11 to P16 notices in respect of the assessment proposed under section 17D of the Kerala General Sales Tax Act and rule 6(5) of the CST (Kerala) Rules, 1957 in respect of the assessment years 2000-01 till 2005-06. The petitioner-industry was set up as a joint concern promoted by the Kerala State Industrial Development Corporation and it started commercial production on September 1, 1993. As stated in paragraph 3 of the writ petition, the petitioner was eligible for exemption of sales tax (KGST) and concessional CST as per Government notification issued as SRO Nos. 520/92 and 521/92 for a period of "seven years" from the date of commercial production, i.e. from September 1, 1993 to August 31, 2000. By virtue of exhibit P1 order passed by the Government, exemption was granted for the said period, quantifying the extent of benefit as "Rs. 366.44 lakhs"; out of which, the petitioner could utilise only a portion of the same and the balance to an extent of Rs. 209.2 lakhs was remaining unutilised for some or other reasons. Meanwhile, in view of various adverse circumstances, the company became sick and it was referred to fifth respondent/BIFR for revival.

(2.) After considering the facts and circumstances, the Board for Industrial and Financial Reconstruction issued exhibit P3 scheme, for re-habilitation, whereby a provision was incorporated under paragraph 13.8(a) causing extension of sales tax exemption (KGST) and concessional CST till March 31, 2006 without any ceiling. It is stated that the said scheme did not work out for some or other reason, as a result of which, a "fresh Scheme" as borne by exhibit P6 was promulgated on July 24, 2001. There also, a similar provision was incorporated by way of clause No. 13.9, which reads as follows:

(3.) Later, exhibit P7 order was issued on June 20, 2005, whereby the clause stipulating to have the benefit provided till March 31, 2006 was modified, confining the same to "March 31, 2005". It is also borne out by the records that the petitioner-company, by virtue of the rehabilitation steps and such other measures, came out from the purview of the BIFR and exhibit P8 order was passed; the operative portion of which reads as follows: