ESSAR OIL LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) DRAFT amendment is submitted by the petitioners. The said draft amendment is granted. The amendment be carried out forthwith.

(2.) AN absolutely misconceived petition has been filed by the petitioners challenging the steps taken by the State to recover sales tax amount due to it along with the interest. The petitioner No.1 company wanted to start its business activities in the State of Gujarat and the petitioner No.1 company was provisionally registered as a Premier Unit under the scheme known as "Capital Investment Incentive to Premier/Prestigious Unit Scheme 1995-2000 (hereinafter referred as "the scheme"). The petitioner No.1 company had opted for the sales tax incentives on deferment basis under the scheme framed by the State Government and as per the scheme, the petitioner No.1 company was eligible for a final eligibility certificate for the sales tax incentives limit calculated at the rate of 125 percent of the amount invested in the eligible fixed assets for a period of 17 years starting from the date of its commencement of commercial production or till the date the incentive limit granted to it is exhausted whichever was earlier. As per one of the conditions of the said scheme, the petitioner No.1 company was required to commence commercial production by 15.8.2003. The petitioner No.1 company could not proceed to achieve its objects by way of commercial production in view of the Public Interest Litigation which was filed challenging the action of the State in allowing the petitioner No.1 company to continue its business activities in the area which according to the petitioner of the Public Interest Litigation being Special Civil Application No.2840 of 1999 was under the Wild Life (Protection) Act, 1972. Initially, the Court in the said petition granted restraining orders and because of the same, the petitioner No.1 company could not commence its business and commercial production. The said proceedings reached its finality in the year 2004, as ultimately, the Supreme Court rejected the said Public Interest Litigation. The petitioner No.1 company commenced its business, but the State Government declined to give the benefit of the said scheme on the ground that the petitioners had failed to carry on its commercial activities within stipulated time provided under the scheme. The petitioner company, therefore, approached this Court by way of writ petition being Special Civil Application No.24233 of 2007. The Division Bench of this Court allowed the said writ petition by its judgment and order dated 22.4.2008. The Division Bench was of the opinion that since the petitioner company could not commence the commercial production because of intervening events, i.e. filing of the Public Interest Litigation and the order was operating against the petitioner company, that relevant period could be excluded while considering the benefit of scheme period provided under the scheme. The Division Bench by giving certain directions ultimately allowed the said writ petition. The Division Bench observed that the petitioner company shall not be given benefit of deferment of sales tax / value added tax beyond 14.8.2020. The aforesaid order of the Division Bench was carried further by the State before the Supreme Court. The Supreme Court allowed the appeal of the State Government being Civil Appeal No.599 of 2012 by judgment and order dated 17.1.2012. While allowing the appeal of the State, the Supreme Court has observed in paragraph 89 as under.

(3.) IT is pointed out to the Court that subsequently, the Supreme Court rejected the said Review Petition.