COCHIN CEMENTS LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) Pursuant to the direction issued by the apex Court in Special Leave to Appeal (Civil) No. 12914/2007 dated 7-4-2008, to dispose of these revision petitions within two months, though the petitions are of the year 2007, they are taken up for final hearing and disposed of by this common order.

(2.) The Central Government by circular dated September 1991 had suggested to the State Governments to grant incentives/tax concessions etc. for such of those industries which would use "fly ash" as the raw material for the manufacture of its products. Pursuant to the aforesaid circular, the State Government has issued SRO No. 388/1996, in exercise of its powers under Section 10 of the Kerala General Sales Tax Act (KGST Act for short), in supersession of its earlier notification, SRO No. 262/1996. By the said notification, exemption is granted in respect of tax payable under Section 5 of the Act to an industrial unit, manufacturing cement using fly ash generated in the State as raw material. The exemption that can be granted under the aforesaid notification shall not exceed 500% of the fixed capital investments of the unit. The notification itself says, that, the exemption notification is subject to all the other conditions and restrictions imposed under the notification SRO No. 1729/93.

(3.) Pursuant to the aforesaid notification issued by the State Government, the assessee had approached the Director of Industries and Commerce by filing an application for grant to eligibility certificate so as to facilitate the industrial unit to approach Secretary, Board of Revenue (Taxes), Thiruvananthapuram to grant exemption from payment of sales tax for the products manufactured by it as envisaged in the notification. The Director of Industries and Commerce, after considering the application filed by the Petitioner, has issued eligibility certificate, certifying that the industrial unit satisfies the conditions prescribed in the notification issued by the Government. After obtaining the certificate from the Director of Industries and Commerce, as envisaged under SRO. No. 193/98, the assessee had approached the Secretary, the Board of Revenue (Taxes), Thiruvananthapuram forgiving effect to the certificate issued by the Director of Industries and Commerce. The Secretary, Board of Revenue (Taxes) by his order No. C4.28282/967TX dated 6/7/19% has exempted the petitioner s industrial unit from payment of sales 42 tax under the Act. The order so passed is as under.