JOSE Vs. GENERAL MANAGER

JUDGEMENT

(1.) THE petitioners are oil millers, whose units are registered as small scale industrial units with -the Department of Industries and Commerce. THE challenge is to the orders marked Ext. PI in each of these cases which while declaring the eligibility of the petitioners for exemption from payment of sales tax, limited the exemption upt o 31-3-1991 only. THE reason stated by the General Manager of the District industries Centre for imposing this limitation is that oil mills producing coconut oil have ceased to be eligible for tax exemption from 1-4-1991 onwards. In O. P. No. 10909 of 1991, the period of exemption is from 4-4-1990 to 31-3-1991, in O. P. No. 11440 of 1991, it is from 28-1-1989 to 31-3-1991 and in o. P. No. 11628 of 1991, it is from 1-12-1989 to 31-3-1991. Petitioners claim that the exemption should extend for the entire period of five years mentioned in S. R. O. No. 968/80 dated 29-9-1980, which applies to the latter two cases and s. R. O. No. 499/90 dated 31-3-1990 which applies to the first of the cases.

(2.) BY S. R. O. No. 968/80 which was a notification issued under S. 10 of the Keral a General Sales Tax Act, 1963 (the act), exemption in respect of the tax payable under the Act was granted on the turnover of the sale of goods produced and sold BY new industrial units under the Small Scale Industries for a period of five years from the dale of commencement of sale of such goods BY the said units, the amount of eligibility being limited to 90% of the cumulative gross fixed capital investment of the unit. What is a new industrial unit under the Small Scale Industries is defined in the Explanation. Petitioners in O. P. Nos. 11440 and 11628 of 1991 are claiming the benefit of this notification.

(3.) ALL the petitioners are registered as small scale industrial units with the Department of Industries and Commerce. They have also been found eligible for the benefits under the respective notifications. The grievance is about the limitation of the benefits upto 31st March, 1991 only. This limitation is based on a subsequent notification s. R. O. No. 440/91 issued on 30-3-1991 which came into force from 1st April, 1991. The concerned General Manager of the District Industries Centre who has issued Ext. P1 in all these cases has stated that the exemption is limited upto 31 st March, 1991, as oil mills producing coconut oil are not eligible for any exemption after 1 st April, 1991. In otherwords , his view is that the notifications. R. O. No. 440/91 has the effect of depriving all units registered earlier of the benefit of the exemption after 1st April, 1991. The question is whether this view is correct.