BALAJI FOOD Vs. STATE LEVEL COMMITTEE

JUDGEMENT

(1.) THE petitioner prays for issuance of a writ of mandamus declaring the action of the first respondent in cancelling the final eligibility certificate dated October 30, 1998 by the cancellation order dated December 21, 2004 as illegal, without authority in law and contrary to the principles of natural justice. The petitioner accordingly prays for issuance of consequential directions restraining the respondents from proceeding to recover the impugned demand which forms part of the incentive availed by it during the subsistence of the final eligibility certificate for the period from December 6, 1996 to December 5, 2004.

(2.) THE petitioner was carrying on business in manufacture and sale of bakery products and is a registered dealer under the provisions of the Andhra Pradesh General Sales Tax Act, 1957 (for short, "the Act" ). The Government of Andhra Pradesh vide G. O. Ms. No. 108, Industries and Commerce (IP) Department, dated May 20, 1996 announced its new industrial policy and accordingly offered various incentives to the new industries which include sales tax exemption/deferment. There is no dispute whatsoever that the petitioner is one of the eligible industries entitled for the incentives.

(3.) PURSUANT to the application dated March 19, 1998 made by the petitioner, the first respondent - State Level Committee vide proceedings dated October 30, 1998 granted final eligibility certificate. The petitioner was accordingly granted sales tax exemption to a tune of Rs. 19,32,420 to be availed for a period of seven years from December 6,1997 to December 5, 2004. The petitioner claims to have availed the benefit only to an extent of Rs. 11,00,783.