SUNITA INDUSTRIES Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The Government of Andhra Pradesh issued G.O.Ms. No.498, Industries and Commerce (I.A.) Department, dated 16-10-1989 to encourage setting up of new industries in certain backward areas of the State of Andhra Pradesh by offering certain special incentives to those who come forward for setting up new industries in backward areas, particularly, in agency areas.

(2.) Petitioner, a resident of Adilabad town was induced to establish a small-scale industry on the basis of certain incentives offered by the State Government pursuant to the G.O. with the hope that the subsidy of 20% capital investment not exceeding Rs.20 lakhs would be extended to her apart from granting of 5 years Sales Tax holiday subject to the maximum ceiling of Rs.35 lakhs of sales tax during the entire holiday period of five years.

(3.) According to the petitioner, the State Level Committee is competent to grant final eligibility certificate if the capital investment is more than Rs.7.5 lakhs and the District Level Committee is entitled to grant final eligibility certificate if the capital investment is less than 7.5 lakhs, as provided under foot note 2 of clause 3 (b) of the said G.O.