R K INDUSTRIES Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioner a registered partnership firm having its industry at Sihor, filed this special civil application and prayed for the declaration that it is entitled to get the cash incentive and Sales Tax incentive benefit as per the resolution of Industries, Mines and Power Department, Government of Gujarat, Sachivalaya, Gandhinagar dated 27th August, 1980 and other resolutions and to direct the respondents, particularly, the respondent No.3 to grant the Sales Tax deferment incentive benefit to the petitioner firm by issuing the necessary eligibility certificate and to further direct the respondents, particularly the respondent No.4, to refund the amount of Sales Tax so far recovered illegally from the petitioner.

(2.) The respondent No.3 is the General Manager, District Industries Centre, an officer of the Industries Department of the Government of Gujarat, and the respondent No.4 is the Commissioner of Sales Tax of the Government of Gujarat.

(3.) The facts of the case, in brief are that the Government has introduced a package of incentives for promotion of industries in rural and backward areas to achieve a more balanced growth and avoid further decongestion of developed areas and large cities effective from 1st November, 1977 vide Government resolution No.IOPD-No.MSC-1076-76237(I) J- dated 22-12-1977. This package of incentives consist of (i) cash on fixed capital investment, and (ii) sales tax benefit in terms of either exemption from sales tax or interest free sales tax loan. With a view to accelerate the development of industries and strengthen the trend of industries coming to developing areas, the State Government has decided to introduce a new scheme of sales tax benefits in lieu of the present sales tax exemption/loan scheme vide its resolution dated 27th August, 1980 and this scheme was given effect from 1st June, 1980. Under this resolution, the cash subsidy scheme of the earlier package was retained.