PRIMA INDUSTRIES LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioner is a private limited company engaged in the manufacture and sale of De-oiled cake, solvent extracted and refined oil. Company is a dealer on the roles of Additional Salestax Officer, II Circle, Palakkad.

(2.) Government of Kerala had issued SRO 1729/03 in exercise of the powers conferred by Section 10 of the Kerala General Salestax Act, 1963 granting exemption to industrial units under medium and large scale industries and also small scale industrial units for a period of seven years from the date of commencement of commercial

(3.) Learned senior counsel appearing for the appellant Smt. Nalini Chitambaram submitted that the learned single Judge has committed an error in holding that the Government have no power under Section 10 of the KGST Act, 1963 to extend period of salestax exemption. Counsel also submitted Section 10(3) of the Act empowers the Government to cancel or vary any notification issued under Sub-section (1) thereof by notification in the Gazette. In order to establish the said contention counsel made reference to Notification G.O.(P) No. 16/03/TD dated 29-1-2003 granting extension of the period of salestax exemption to the industries engaged in the manufacture of cement using fly ash for a further period of two years. Reference was also made to the benefit of extension of exemption granted to M/s. Cochin Cements Ltd. on the basis of the Government Notification. Counsel also referred to the orders issued by the Electricity Board granting tariff concession to certain industries for few more days due to power cut. Counsel submitted same principle should apply to the petitioner industry as well in the matter of salestax concession. Counsel also made reference to the decision of the Apex Court in Hitech Electrothermics & Hydropower Ltd. v. State of Kerala, .