JAY LAMINART LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This Special Civil Application has come up before this Court in the following circumstances. By Notification dated 5.2.1981 issued under Section 49(2) of the Gujarat Sales Tax Act 1969 the State Government exempted sales by specified manufacturers of goods manufactured by them from payment of whole of sales tax. The condition of such exemption was that if the specified manufacturer had obtained an eligibility certificate from the Industries Commissioner or as the case may be from the General Manager of the District Industries Centre concerned stating therein that new industry has been commissioned within the period commencing from 1.6.1980 and ending on 31.5.1985 in any of the designated areas. In explanation appended to the Notification the expression designated areas meant firstly an area beyond 24 K.Ms. from the Cities of Ahmedabad and Vadodara as constituted under the Bombay Provincial Municipal Corporations Act 1949 and area beyond 10 K.Ms. from the Cities of Surat and Rajkot as constituted under the Bombay Provincial Municipal Corporations Act 1949 or from the Municipal Borough of Bhavnagar and Jamnagar as constituted under the Gujarat Municipalities Act 1963 In the Table specifying the limit of exemption divided various areas for the purpose of exemption Growth Centres A-Grade B-Grade and C-Grade. For the purposes of Ahmedabad Vadodara and other aforesaid Municipal limits it further specified that industries constituted beyond the specified kilometer limits of the aforesaid Municipalities large and medium industries shall get the benefit as per A-Grade Growth Centres and small scale industries shall get benefit as per C-Grade Growth Centres. Annexure-I was appended to the said Notification giving details of Growth Centres according to grade and also areas which are considered beyond the distance limits of 24 K.Ms. from the Municipal limits of Cities of Ahmedabad and Vadodara and 10 K.Ms. from the Municipal limits of Surat Bhavnagar Rajkot and Jamnagar. At Sr. No. 71 Bavla was stated to be a Grade-C Growth Centre constituted beyond the distance limit of 24 K.Ms. from the Municipal limits of Ahmedabad.

(2.) The petitioner commenced commercial production of its industry established at Bavla on 1.2 The petitioner unit is constituted beyond 24 K.Ms. from the Municipal limits of Ahmedabad. The petitioner applied for the eligibility certificate in the first instance on 21.9 The eligibility certificate (Annexure A5) was issued in favour of the petitioner stating that M/s. Jay Laminart Pvt. Ltd. which is located at Bavla and that it has been commissioned i.e. to say it has started commercial production from 1.2 The petitioner was allowed to avail exemption from the payment of sales tax only upto 25 of its fixed capital investment. The petitioner moved an application (Annexure A6) pointing out to the Addl. Commissioner of Industries that while the total capital investment made by the petitioner has been Rs. 66 8 889 the project cost has been appraised only at Rs. 20 4 785 It was further urged that the petitioner unit is entitled to benefit at the rate of 50% of fixed capital investment being housed at C Grade Growth Centre the benefit extended is only 25% of the fixed capital investment. Considering the petitioners submissions the eligibility certificate dated 21.9.1985 was amended vide Annexure A7 dated 8.4.1988. While the project cost appraisal was increased from Rs. 20 4 785 to Rs. 56.13 lacs the quantum of benefit under the Scheme was restricted to 25% of the capital investment only.

(3.) Inspite of several representations being made to the authorities the petitioner failed to get any relief. The petitioner was given a reply dated 29.7 stating that since the petitioner unit has not completed effective steps before 15.6.1982 as per the Policy it is not entitled to full rate of benefit. The aforesaid letter was replied to by the petitioner vide Annexure A15. In these circumstances the petitioner has approached this Court seeking a mandamus to the respondents for permitting the petitioner unit to avail benefit under the Scheme by making necessary amendment in the eligibility certificate.