MALABAR OXYGEN CO Vs. ADDITIONAL SALES TAX OFFICER

JUDGEMENT

(1.) What is the scope of the words "taking effective steps" for the purpose of claiming sales tax exemption in terms of Government Notification S. R. O. No. 1092 of 1999 as amended by Notification S. R. O. No.295 of 2000 is the short question which arises for consideration in this Writ Appeal directed against the judgment dated June 1st, 2004 passed by the learned Single Judge dismissing W. P. (C) No. 1512 of 2004 filed by the appellant.

(2.) The appellant is a small scale industrial unit engaged in the manufacture of industrial and medical oxygen. The unit is situate at Chelari, Thenhipalam, District Malappuram. It is registered as a dealer under the Kerala General Sales Tax Act, 1963 (for short "the Act"). It applied for sales tax exemption to the General Manager, District Industries Centre, Malappuram. The application was rejected on the ground that the unit had not taken effective steps to start the industry before 1st January, 2000. Feeling aggrieved by this order, the appellant filed an appeal before the Director of Industries and Commerce, Thiruvananthapuram which was dismissed on 4th January, 2003 observing that "obtaining of provisional SSI registration prior to 1st January, 2000 is a compulsory condition" but the unit had taken provisional registration only on 2nd August, 2000 and therefore it was not eligible for tax exemption. It is against the aforesaid two orders that the appellant filed W. P. (C) No. 1512 of 2004 out of which the present appeal has arisen. The matter was considered by the learned Single Judge who relied on his earlier judgment in W. P. (C) No. 20915 of 2003 dated 4th September, 2003 wherein it has been held that taking of provisional registration by the industry prior to 1st January, 2000 is mandatory and since the appellant had not taken the provisional registration prior to the cut off date, it had not taken "effective steps" for setting up the industry in terms of the aforesaid notifications. Consequently, the Writ Petition was dismissed. Hence, this appeal.

(3.) By S. R. O. No. 1729 of 1993, the State Government, in exercise of the powers conferred by S.10 of the Act, granted tax exemptions to industrial units and / or reduction in the rate of tax payable on the sale or purchase of goods by such industrial units subject to the conditions and restrictions specified therein. This notification was amended by S. R. O. No. 1092 of 1999 which in turn was amended by S. R. O. No. 295 of 2000. The original Notification S. R. O. No. 1729 of 1993 after these amendments was made applicable only to the following amongst other categories of industries: