MAHA SHAKTI COKE Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Petitioners have challenged, by way of the present petition, action of the respondents-authorities praying for quashing of the order passed by the State Level Committee ["Committee" for short] meant for resolution of the disputes thereby denying the benefit of Sales Tax Incentives to the petitioners under the Scheme for Economic Development of Kutch District, by issuance of a writ of mandamus. The present petition arises in the following factual background :

(2.) The petitioner no.1 is a Company duly incorporated under the Companies Act, 1956 and the petitioner no.2 is a shareholder of the petitioner no.1-Company. On 26th January 2001, on account of devastating earthquake which shook the entire State of Gujarat, and more particularly, the district of Kutch and consequently, the economic development of the Kutch district had come to a major halt. In an attempt to give impetus to the economic development and for creating better opportunities of employment and an environment of industrial activities, the respondent no.1-State vide its Resolution dated 9th November 2001 announced a scheme of sales tax incentives titled as, "Incentive Scheme 2001 for Economic Development of Kutch District" {"Scheme" for short} and thereby invited existing industrial undertakings and new industries to set-up units in the said district, by promising the benefit of sales tax exemption or sales tax deferment of eligible fix capital investment under Section 49 (2) of the Gujarat Sales Tax Act, 1969.

(3.) The period of Scheme was initially notified from 31st July 2001 to 31st October 2004, which was extended further by two Notifications dated 13th September 2004 & 7th January 2005 by which applicability of the Scheme was extended to 31st December 2005.