GIRI OIL MILLS Vs. STATE OF KERALA

JUDGEMENT

(1.) THE petitioner is a firm registered under the Indian partnership Act. THE partners are M/s. K. V. Giri ,k. V. Sivadas and Mrs. Pechi Ammal.

(2.) THE Government in the year 1980 issued Notification s. R. O. No. 968/80 under S. 10 of THE Kerala General sales Tax Act, for short THE Sales Tax Act. This Notification provides that a small Scale Industry is entitled to a tax holiday for a period of five years from the date of commencement of sale of its product subject to the condition that the tax if any, collected by such industry by way of tax on its sale shall be paid over to the Government and the Sales Tax, if any, already paid by such industry to the Government shall not be refunded. THEre are two provisos added to this Notification. THE first proviso provides that the industry shall produce the proceedings of the General Manager, District Industries Centre declaring the entitlement of the unit for exemption from Sales Tax. THE second proviso provides the procedure to work out the concession claimed by such a unit. It says that the cumulative sales tax concession granted to a unit at any point of time within this period shall not exceed 90% of the cumulative gross fixed capital investment of the unit.

(3.) IN the light of what is stated above the proceeding contemplated under Ext. P3 requires to be investigated. The investigation in respect of the proceedings however, shall be in the line indicated in this judgment. The authority concerned, shall keep in view the decision of the supreme Court in Cement Marketing Company of INdia Ltd. v. Asst. Commr. of Sales Tax, INdore (AIR. 1980 S. C. 346) also while considering the question as to whether penalty under the circumstances is leviable at all. The O. P. is disposed of as above. Issue carbon copy on usual terms. . .