STATE OF GUJARAT Vs. SANAND TEXTILE INDUSTRIES LTD

JUDGEMENT

(1.) THIS Appeal under Clause 15 of the Letters Patent is directed against the judgment and order dated 5th May 1995 of the learned Single Judge allowing the writ petition of the present respondent and, quashing and setting aside the decision dated 18th May 1994 of the Industries Commissioner, by which the Industries Commissioner had rejected the respondent Company's application for sales tax incentives under the 1980-86 Scheme for its expansion project.

(2.) THE State Government had framed a Scheme for sales tax incentives for the benefit of industries being established in rural and backward areas to achieve a more balanced growth and to avoid further congestion of developed areas and large cities. The Scheme was initially for a period of five years i. e. upto 31st May 1985, but subsequently, it was extended and further extended upto 31st March 1988.

(3.) THE undertaking of the respondent Company was established in the year 1982. The Commissioner of Sales Tax gave exemption from payment of sales tax to respondent undertaking upto the limit of Rs. 16,27,750/- during the period from 29. 6. 1982 to 28. 6. 1989. On the basis of the said eligibility certificate, the sales tax exemption certificate was issued by the Assistant Commissioner of Sales Tax on 25th November 1982. Subsequently, by virtue of additional investments in fixed assets made by the respondent Company, the limit of eligibility certificate was increased to Rs. 24,12,000/- and the sales tax exemption certificate was modified accordingly. The respondent Company availed of the entire amount of exemption by December 1986.