NITYA LABORATORIES LIMITED Vs. COMMERCIAL TAX OFFICER HYDERABAD

JUDGEMENT

(1.) HEARD learned counsel for the parties and with their consent this writ petition is being disposed of at this stage, as the matter involves a short point.

(2.) THE petitioner got some benefits under a scheme known as "target 2000, New Industrial Policy, 1995". The incentive with which we are concerned in this writ petition was that payment of sales tax was deferred for a period of 14 years with effect from June 5, 1997. The total deferment of tax was Rs. 5,13,85,670. The petitioner had to complete his unit in two phases. The second phase was not completed within time, it was completed beyond time and also in addition to the original product, four more products were being produced by the petitioner-industry. Since there was delay in completion of second phase, the petitioner moved an application before the competent authority which is a State Level Committee for grant of benefits under the Target 2000. The State Level Committee accepted the proposal of the petitioner and also the reasons for delay in starting the second phase of industry. The State Level Committee, on March 4, 2003 passed the following order :

(3.) THEREFORE the impugned order is quashed to the extent it would be applicable prospectively, which would otherwise mean that the order of the State Level Committee would be operative from the date on which the petitioner went into the production in the second phase. The writ petition is accordingly allowed. No order as to costs.