VENKATESWARA OIL MILLS Vs. CHAIRMAN STATE LEVEL COMMITTEE

JUDGEMENT

(1.) The petitioner is a dealer under the Andhra Pradesh General Sales Tax Act, 1957 (for short "the Act"). It seeks a writ of mandamus to the fourth respondent, the Commercial Tax Officer, Mancherial, Adilabad, to refund the sum of Rs. 3,06,901 with interest forthwith and for consequential and incidental orders.

(2.) The claim arises in the following circumstances. The Government of Andhra Pradesh formulated a scheme granting certain incentives to the newly established industries. The scheme has been published in G.O. Ms. No. 498, Industries and Commerce (IA) Department dated 16/10/1989. Among the incentives is included "deferment/tax-holiday on sales tax". This is available for a period of five years subject to a ceiling of rupees thirty-five lakhs during the entire holiday period of five years in so far as small-scale industries are concerned. The petitioner is a small-scale industry established with a view to avail of the benefits granted under the said G.O. Ms. No. 498. On the application of the petitioner for the benefits under the G.O. a temporary eligibility certificate was granted by the Industries Department in a sum of Rs. 1,85,000 which was valid for a period of five years with effect from 30/01/1991 to Jan 29/01/1996. The petitioner approached the fourth respondent to grant the benefit of tax-holiday and filed the temporary eligibility certificate for availing the tax-holiday. Ignoring the temporary eligibility certificate, the fourth respondent recovered a sum of Rs. 3,06,901 towards the sales tax due by the petitioner. The final eligibility certificate was, however, granted on 3/12/1993, for a sum of Rs. 9,06,184. It is submitted that after the final eligibility certificate was issued no recoveries are made; but in so far as the recovery of tax already made is concerned the petitioner filed an application for refund on 15/12/1993. That was followed by another representation given on 17/01/1994. As no action was taken on those representations the petitioner filed this writ petition. "Notice before admission" was taken by the learned Government Pleader on 29/11/1994. The case underwent several adjournments. Counter-affidavit was filed by the fourth respondent on 18/01/1995. The fourth respondent stated that he was not aware as to how the final eligibility certificate was issued by the committee and it is added that the amounts were collected by him before the issuance of the final eligibility certificate and that no action was taken after issuance of the final eligibility certificate. The sales tax exemption was granted, it is submitted, for the assessment year 1991-92, without verifying the conditions and that the present incumbent, having received the application for refund, verified the facts and inspected the business premises on 16/03/1994. He pointed out that one of the conditions for grant of the incentive was that the tax in respect of which exemption was granted should be utilised for development of the industry and the second condition was that the unit should be functioning. He noted that these conditions were not complied with and prayed that the writ petition be dismissed.

(3.) Shri V. Ravi Kiran Rao, the learned counsel for the petitioner, contends that the fourth respondent has behaved high-handedly and recovered the tax ignoring the grant of the temporary eligibility certificate and, therefore, the tax recovered by coercion should be directed to be refunded with interest. Learned Government Pleader, Commercial Taxes, submits that the amount recovered relates to the arrears for the period 1990-91 to 1992-93. Thus whatever was due was recovered and that having regard to the final eligibility certificate the petitioner need not pay tax for the future period. As such, it is not a case to order refund of tax already recovered.