GUJARAT ASBESTOS Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This petition raises a short issue. The petitioner is engaged in the business of manufacture of A.C. Pipes and fittings and is also registered under the Sales Tax Act, 1969. The petitioner established a new industry and commenced production in the year 1981 and it became eligible to claim the benefits under the Sales Tax Incentive Scheme. The petitioner was duly issued eligibility Certificate dated 29-1-1982 for the purpose of claiming exemption from the payment of Sales Tax. It appears that after the petitioner became eligible on commencement of the production, by Notification dated 17-8-1982, the Cement base industries were included in the list of industries not eligible for claiming exemption under the Sales Tax Incentive Scheme.

(2.) On the basis of the Notification excluding the cement base industries from the eligibility of the benefit under The Sales Tax Incentive Scheme, the Sales Tax Officer II, Bharuch, informed the petitioner that he is not entitled to claim the benefit under the said Scheme and ultimately issued a Recovery Notice dated 5-12-1986 (Annexure J to the petition), demanding sales tax for the period from 1-4-1982 to 31-3-1984 with interest thereon.

(3.) It may be noticed that under the Notification dated 27-8-1980 (Annexure C to the petition), under which the petitioner claimed the sales Tax Incentive, the petitioner was entitled for exemption for the period for 10-12-1981 to 9-12-1988. In the aforesaid circumstances, the petitioner has approached this Court asserting that once he became entitled to claim exemption under the Saks Tax Incentive Scheme as notified by the Government Resolution dated 27-7-1980, during the currency of the Scheme when the industry was eligible, subsequent putting of the industry in the list of the industries not eligible for claiming the exemption under the said Scheme, would not result in depriving the petitioner from the benefit of the Scheme for the whole period.