PARVATI PARAMESWARA CABLES Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioners in these four writ petitions state that they have established new industries registered in 1993 as small-scale industries and that they are eligible for the incentives under G.O.Ms. No. 498 dated 16/10/1989, read with G.O.Ms. No. 117 dated 17/03/1993, of the Government of Andhra Pradesh. They state that they went into commercial production about the middle of 1994, i.e., between May and July, 1994.

(2.) The petitioners claim that one of the incentives given under the said G.Os. to the small-scale industries is "sales tax holiday" for a period of five years. It is their contention that under the sales tax holiday incentive they are entitled to collect the sales tax exigible on the goods produced and sold by them during that period of five years up to a maximum limit of Rs. 35,00,000. On their application, they were issued temporary eligibility certificates "for availment of sales tax exemption". They are aggrieved by the clause in those certificates issued to them which imposes the following condition for availing tentative eligibility :

(3.) After hearing Mr. E. Manohar, learned counsel appearing for the petitioners, and the learned Government Pleader for Industries who has taken notice for the respondents, we are of the view that there is no substance in the claim of the petitioners that under the sales tax incentive of "sales tax holiday" applicable to them, they are entitled to collect sales tax during the period of five years for which they are eligible for that incentive and appropriate it without payment to the Government. A reading of the G.O. supports our view. As regards the incentive in respect of sales tax, item "B" in paragraph 3 of G.O.Ms. No. 498 provides as follows :