MIPCO SEAMLESS RINGS GUJ LIMITED Vs. INDUSTRIES COMMISSIONER

JUDGEMENT

(1.) The petitioner-company has approached this Court with a grievance that it has been wrongly denied certain benefits under the provisions of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act") though it is very much entitled to the same. The petitioner has also challenged recovery proceedings initiated by respondent No. 2 whereby, the Government authorities have sought to recover the amount of sales tax from the petitioner company which has been referred to in Annexure A-13(1) annexed to the petition. Though the petitioner has challenged validity of sec. 47(4) of the Act in the petition, the learned advocate appearing for the petitioner has fairly submittd that the petitioner would not like to challenge validity of the said section.

(2.) The facts in a nutshell giving rise to the present petition are as under:-

(3.) It is the case of the petitioner company that the petitioner had started manufacturing rolled rings. While starting manufacture of rolled rings, the petitioner company had fulfilled all the conditions for getting exemption from payment of sales tax as prescribed under the Government Resolution dated 27.8.80. Upon certain conditions, the petitioner company was exempted from payment of sales tax as specified in the eligibility certificate dated 5.10.82 whereby the company was exempted from making payment of sales tax to the tune of Rs. 50 lakhs in respect of manufacture of rolled rings as specified in the eligibility certificate dated 5.10.82 during the period commencing from 19/04/1982 to 18th April 1989. The eligibility certificate given to the company with regard to the above referred exemption was subsequently modified so as to enable the petitioner company to get benefit to the tune of Rs. 80 lakhs. Having commenced manufacturing rolled rings, the petitioner company wanted to avail further exemption under the scheme by manufacturing another type of ring named "forged rings". For the said purpose it was necessary for the company to import a new machinery and by the said diversification the company was to start manufacturing 'forged rings' which were little different from the rolled rings which were being manufactured by the company.