STATE OF GUJARAT Vs. ULTRATECH CEMENT LTD.

JUDGEMENT

(1.) Since common facts are involved in these two appeals, the same were taken up for hearing together and are disposed of by this common judgment.

(2.) The appellant-State of Gujarat has called in question the order dated 17th October, 2014 passed by the Gujarat Value Added Tax Tribunal (hereinafter referred to as 'the Tribunal') in Second Appeals No.32 and 33 of 2008 respectively, by proposing the following four questions stated to be substantial questions of law:

(3.) The facts stated briefly are that pursuant to the Sales Tax Incentive Schemes declared by the Government of Gujarat to the new industries in the backward area, the respondent-assessee has established a unit for manufacturing cement at Kuvaya. The assessee was granted tax incentive of Rs.424.80 crores for Unit No.I by final eligibility certificate dated 18th November 2000 and tax incentive of Rs.468.83 crores in respect of its unit No.II for the period from 1st April, 1998 to 31st March, 2005. Under the incentive scheme, the assesee could purchase the goods to be used as raw or processing materials or consumable stores used in the manufacture of taxable goods without payment of tax on one hand and was permitted to sell the goods manufactured by it without payment of the tax on the other hand. In respect of purchases of the raw processing materials or consumable stores of taxable goods made by it, the assessee was required to be issued Form No.26 or 40, as the case maybe, wherein it was required to give a declaration to the effect that whatever purchase of the raw material, processing material or consumable stores made by it, shall be used in the industrial unit for which eligibility certificate was obtained by it. According to the appellant, the assessee did not use the entire material purchased by it against Form No.26 or 40 for the purpose of manufacture in its unit and that part of the purchases were utilised for the benefit of others and that thereby the assessee had committed breach of the declaration contained in Form No.26 or 40.