VICNIVAS AGENCY Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE above writ petition is filed for issuance of a writ of certiorarified mandamus to call for the records of the third respondent in his proceedings K.Dis.No.3645/A8/99 dated 9.8.1999, quash the same and direct the respondents to grant State Capital Subsidy and Sales Tax Waiver to the petitioner Company.

(2.) BY his order dated 23.7.1999, the Industries Commissioner and Director of Industries and Commerce by referring the letter of the General Manager, District Industries Centre, Tuticorin dated 22.6.1999 informed him that the subsidy cannot be extended to an asset, which has been partly created by one entrepreneur and completed by the other one. Hence the claim of the petitioner was rejected. BY the order dated 9.8.1999, the General Manager, District Industries Centre, Thoothukkudi by stating the reason as stated by the Industries Commissioner rejected the request of the petitioner for capital subsidy and the sales tax waiver.

(3.) THE conditions stipulated in the Government Order G.O.Ms.No.500 proceed as follows: "With a view to encourage more industries in Tamil Nadu, the Government direct that the following concessions also be made available to the industries:- (a) For the industries to be started in the 7th backward taluks, i.e. other than the 30 most backward taluks, from among the 105 backward taluks, and in the Industrial Estates developed by any of the Government agencies including Madras Export Porcessing Zone, Madras Metropolitan Development Authority, the scheme of Interest Free Sales Tax Loan / deferral ordered in the Government Order first, third and fourth read above is modified as follows:- (i) For the existing units undertaking expansion or diversification, deferral of sales tax will be given for nine years and the total amount thus given shall not exceed 80% of the additional investment made in fixed assets. (ii) For the new units, the total amount of deferral of sales tax will be given for nine years to the full extent of the total investment made in fixed assets. (b) THE interest free Sales Tax deferral scheme is extended to the expansion (part -I) as well as to the stating of new industries (Part-II) in the other areas also, where this scheme was not in vogue hitherto. THE deferral of sales tax for the industries in these areas will be for five years subject to a maximum of 60% of the total investment made in fixed assets in the case of new industries and 50% of the additional investment in fixed assets made in the case of expansion/diversification of the existing industries. (C) As a gesture to the industries to be set up in any part of Tamil Nadu with an investment in fixed assets of more than Rs.50 crores, a special incentive of deferral of sales tax for a period of 9 years to the extent of total investment made in fixed assets will be given. This deferral concession will also be available to the existing industries going in for expansion/diversification with an additional investment in fixed assets for more than Rs.50 crores. 5. THE sales tax deferral/waiver of expansion/diversification ordered in paras 3-4 above is subject to the Sales Tax payable on products manufactured by the capacity created by expansion/diversification units only. 6. THE industries in the Most Backward Taluks and in the SIPCOT complexes at Cuddalore, Manamadurai and Pudukkottai can opt either for the full waiver of Sales Tax for a period of five years ordered in para 3 above or for the deferral of sales tax for nine years as applicable to the industries in the Backward Taluks ordered in para 4(a) above. THE option should be exercised along with the application to be submitted to the authority for issuing eligibility certificate. THE option once exercised and accepted will be final and cannot be changed. 7. THE application for Interest Free Sales Tax deferral should be filed before the General Manager, District Industries Centre concerned in the case of Small Scale Industries and before SIPCOT in the case of medium and major industries, before the commencement of commercial production.