M/S. RAYALASEEMA CONCRETE SLEEPERS PVT. LTD. Vs. THE ASSISTANT COMMISSIONER OF SALES TAX, GOVERNMENT OF GOA

JUDGEMENT

(1.) Heard learned Counsel for the petitioner and the learned Additional Government Advocate for the respondent nos.1 & 2. I have also heard the learned Counsel appearing for the respondent no.3.

(2.) The petitioner is said to be registered as a small scale industry with the Director of Industries, Government of Goa. The petitioner had entered into a contract with the respondent no.3 for supply of slippers. As the petitioner's unit exceeded the limit for small scale industry had got registered as medium scale industry. The production of the slippers started sometime in May, 1993. By an order dated 30/03/1998 the Sales Tax Officer at Margao made assessment of sales tax amounting to Rs.34,45,919.00 on the sales made by the petitioner for the year 1993 -94 and accordingly a demand was raised. The petitioner challenged the same before the Assistant Commissioner. The learned Assistant Commissioner dismissed the appeal on 27/05/1999 which was challenged in a Second Appeal before the Administrative Tribunal. The second appeal came to be dismissed on 22/02/2010, which brings the petitioner to this Court.

(3.) The contention raised on behalf of the petitioner is that as per letter dated 3/01/1991 written by the Under Secretary (Finance Expenditure), Government of Goa to the third respondent, the manufacture of slippers for catering to the needs of the third respondent ­ Corporation stood automatically exempted and there was no need for separate exemption certificate being issued in respect of the manufacturing unit. The learned Counsel has then placed reliance on the acknowledgment dated 4 /05/1993 in order to show that a permanent exemption was applied for.