NARENDRA OIL REFINERIES Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THESE four writ petitions raise common questions of fact and law and were, therefore, heard together and are being disposed of by this common judgment.

(2.) IN these petitions, the constitutional validity of the Bombay Sales Tax (Amendment and validating Provisions) Act, 1987, is challenged.

(3.) WITH a view to encouraging entrepreneurs to establish industrial units in undeveloped or under-developed ares of the State of Maharashtra outside Bombay - Thane and Pune-Pimpri -Chinchwad regions, the Government of Maharashtra announced a package scheme of incentives in the year 1964. Certain incentives during the initial stages of production and a cash refund of sales tax were offered under the said incentive scheme. Thereafter, by further resolution dated october 23, 1973, the Government divided various undeveloped areas of the State into four groups and modified the package scheme with effect from August 15, 1973. Under the said scheme, eligible units were entitled every year to the sales tax incentive at 4 per cent of the cost of the fixed assets plus employment incentive based on the average employment worked out at rs. 12,000 per job per year, limited to 4 per cent of the cost of fixed assets, provided the total amount so calculated was limited to the total sales tax liability during the year or 8 per cent of the gross value of the fixed assets whichever is lower. Further, special capital incentive scheme with effect from August 1, 1977, was also introduced. By Government resolution dated October 18, 1979, the special capital incentive scheme was extended for a further period of one year, i. e. , up to July 31, 1980.