SUPREME OIL INDUSTRIES LTD Vs. ACCT /SPECIAL CELL

JUDGEMENT

(1.) In this application under section 8 of the West Bengal Taxation Tribunal Act, 1987 the petitioner -company challenges the order dated February 28, 2000 of respondent No. 1, Assistant Commissioner, Commercial Tax, Special Cell, rejecting the petitioner's application for grant of eligibility certificate (E.C.) and also the order in revision dated March 17, 2001 of the Deputy Commissioner, Commercial Taxes, Special Cell (Respondent No. 2) affirming the said rejection.

(2.) THE petitioner -company engaged in the business of manufacturing edible rice bran oil at its factory at Alamganj, Burdwan, is registered under the West Bengal Sales Tax Act, 1994 and also under the Central Sales Tax Act, 1956. The company is also registered with Directorate of Commerce and Industries, Government of West Bengal. The petitioner's old manufacturing unit had been demolished in 1997 and a new industrial unit was set up by the petitioner in 1998 with expanded capacity at that very place for manufacturing a product identical with the old one. For the said new industrial unit, fresh registration certificate from Director of Industries was obtained. The West Bengal Industrial Development Corporation Ltd., Government of West Bengal also issued E.C. under the West Bengal Incentive Scheme, 1993, for this newly formed industrial unit. It has been specifically mentioned there that the petitioner is to get incentive by way of remission of sales tax. In the new unit, capacity of solvent extracted rice bran oil was increased from 2,280 tons to 4,845 tons and capacity of de -oiled rice bran oil was increased to 20,400 tons in place of existing capacity of 9,600 tons. The applicant fulfilled all the terms and conditions of Explanation (a) under section 40(12) of the West Bengal Sales Tax Act, 1994. The applicant's manufacturing unit was a newly set up industrial unit in terms of the aforesaid provision and so tax on the sale of its product was liable to be remitted. The applicant's unit was a newly set up unit which started manufacturing goods on or after the appointed day, i.e., on May 1, 1995. The respondent No. 1, as per the petitioner, misinterpreted the said provision and failed to take note of the date "on or after May 1, 1995" and wrongly put stress on the words "first time in West Bengal". Respondent No. l's order linking up petitioner's old unit with the newly set up industrial unit led the respondent to error in his finding. The old unit was demolished in 1997. The respondents also failed to take note of the fact that no application for E.C. was filed by the petitioner for his old unit. The respondent's finding that the petitioner's factory is not a newly set up industrial unit nor an extension of the existing unit suffer from legal lacunae under the facts and circumstances.

(3.) THE only point for consideration is whether the petitioner's manufacturing unit for production of rice bran oil and de -oiled rice bran is a newly set up industrial unit or not or in the alternative if the same unit is an expanded portion of an existing industrial unit or in other words whether the decision of the Revenue authority holding that the unit of the petitioner is neither a newly set up industrial unit nor an expanded portion of existing industrial unit can be sustained.