ARSHIYA LIMITED Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Leave to amend the cause title so as to correct the representation of the State of Maharashtra, is granted. Amendment be carried out forthwith.

(2.) Heard. Rule. Rule made returnable forthwith, by consent of learned counsel for the respective parties.

(3.) We are of the view that even though the Government has formulated a policy of granting certain incentives and benefits for inviting foreign investment in industrial service and trade operations as per its G.R. dtd. 12/10/2001, which has been to some extent made into reality by issuing another G.R. dtd. 15/10/2011, the fact remains, in a case like this, that unless a proper procedure regarding grant of exemption and compensating the concerned Grampanchayat for loss that it may incur because of grant of such exemptions, is followed by the State Government, a policy as framed by the Government cannot be effectively implemented. In other words, in a case like this, it would be necessary for the State Government to decide the representation made by the petitioner seeking some exemption from payment of local taxes including Grampanchayat taxes. It is seen that there is already one representation made in this regard by the petitioner, but same has not yet been decided. In our considered view, this representation would have to be decided by the State Government by following the procedure prescribed in Sec. 124 of the Maharashtra Village Panchayats Act, 1959 and this has to be done in the time bound manner by the Respondent No.1. Accordingly we issue the following directions:-