INDUSTEEL INDUSTRIES Vs. STATE OF GUJARAT

JUDGEMENT

(1.) WHAT is challenged in this petition under article 226 of the Constitution is the communication dated December 23, 2002 (annexure "k") from the Assistant Industries Commissioner (Incentives) conveying the decision of the State Level Committee rejecting the petitioner's claim for sales tax incentives under the New Incentive Policy - Capital Investment Incentive (General) Scheme, 1995-2000 which is at annexure "a" to the petition.

(2.) THE petitioner set up an oxygen gas plant in Village Mamsa in Bhavnagar District which area is covered by the aforesaid scheme. The scheme came into operation from August 16, 1995 and remained in force up to August 15, 2000. There is no dispute about the fact that the plant was set up during the operation period of the scheme and the commercial production commenced on January 20, 1999. There is also no dispute about the petitioner's case that it is an eligible unit under the scheme. The petitioner had claimed the incentives under the scheme in respect of the following fixed capital investments :-

(3.) THE stand of the respondent-authorities represented by Mr. Siraj Gori, learned AGP, is that the land was acquired prior to the date of commencement of the Scheme; therefore, it would not fall within the eligible fixed capital assets as defined in clause 5 (xiii) (A) read with the Explanation thereto. As far as the plant and machinery is concerned, the respondents' case is that it was not new plant and machinery, but second hand plant and machinery because it was purchased by Asiatic Steel Industries Ltd. , and not by the petitioner. As far as the building is concerned, though the reply affidavit does not specifically deal with the building, the learned AGP submits that since the construction contract for the building was entered into on July 1, 1995, i. e. , before the date of commencement of the Scheme, the petitioner is not eligible to get any incentive in respect of the building also.