VIPPY INDUSTRIES LTD Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) THE petitioner, a Limited Company, has filed this petition challenging the order dated 11.10.2010 (Annexure P/1) passed by the High Level Committee by which it has refused to extend the period of exemption under Notification No.A32494STV (108) dated 06.10.1994 inspite of there being directions issued by the BIFR in the scheme sanctioned on 04.10.2007 for the revival / rehabilitation of the petitioner Company. The petitioner has also challenged the consequential orders of assessment dated 10.01.2012 (AnnexuresP/2 & P/3) passed by the Assessing Authority refusing to grant the benefit of exemption for want of eligibility certificate for such exemption from tax under M. P. Value Added Tax Act, 2002 and Central Sales Tax Act, 1956. According to the petitioner no demands could be raised on the basis of the impugned assessment orders (AnnexuresP/2 & P/3) as the same is not enforceable against the petitioner during implementation of the scheme in view of provisions of Section 22 of the SICA.

(2.) Briefly stated the petitioner Company engaged in the business of solvent extraction of Oil and Doiled Cake had established its Unit at Dewas. The petitioner claims to be a duly registered dealer under the State as also under the Central Sales Tax Laws.

(3.) It has been averred by the petitioner that it was granted an eligibility certificate on 05.02.2000 for exemption from payment of tax under Notification dated 06.10.1994 in respect of its HIPROEOU Division for a period of 5 years from 01.02.1996 to 31.01.2001. As the petitioner's Unit remained nonoperative for a period of 1362 days, it could not avail the benefit of exemption during the period of eligibility. In the circumstances, petitioner approached the State Level Committee for extension of exemption vide application dated 21.11.2001. The State Level Committee rejected the petitioner's prayer in its meeting held on 31.10.2003 by observing that there is no provision for extension of the period of exemption. Feeling aggrieved, the petitioner filed an appeal before the State Appellate Forum. The matter was referred to the Cabinet Committee as per the decision dated 05.03.2005. However, the Cabinet Committee also rejected the petitioner's prayer for extension of exemption as communicated to the petitioner on 06.02.2006.