SOHANLAL Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) THE petitioner carries on the business of manufacturing and/or processing iron and steel cubes under the name and style of "m/s. Indian Steel Corporation" at Chatri Pool, Ratlam. This concern is registered as a dealer under the M. P. General Sales Tax Act, 1958, as also under the Central Sales Tax Act, 1956. The petitioner claims to have founded the aforesaid industrial unit on June 19, 1981 and commenced the production on October 10, 1981 as a new unit. It purchases certain goods from the market. Such goods are used in manufacturing process and are converted into cubes. The cubes are therefore, manufactured out of the iron scrap purchased by the petitioner. By notifications (annexures F-1 and F-2), certain exemptions from the payment of State sales tax and entry tax have been granted to the new industrial unit going into production after April 1, 1981. The procedure for grant of exemption certificate under the aforesaid notification has been prescribed vide letter dated January 12, 1984 (annexure G) issued by respondent No. 1. The aforesaid letter contains the instructions. The petitioner claimed that it has complied with the said instructions and earned the eligibility for obtaining the certificate in that behalf. The petitioner submitted an application on October 3, 1983, annexure H, in the prescribed form to respondent No. 3, an officer authorised by respondent No. 2, to grant necessary eligibility certificates for exemption from payment of taxes. A similar application seeking exemption from entry tax was also filed on October 5, 1983 (annexure I-2) to the same authority. The details were asked furnished vide annexures J and J-1. It is contended that the District Level Committee recommended the grant of necessary eligibility certificate to the petitioner. However, respondent No. 3 conveyed to the concern of the petitioner on August 7, 1984 (annexure K) that the concern, on the basis of the decision taken by the State Level Committee of the petitioner was not found eligible for grant of eligibility certificate.

(2.) AGGRIEVED by this communication, the petitioner presented this writ petition and has sought quashment of annexure K and declaration of the entitlement to the benefits of the notification, annexures F-1 and F-2 as noted above.

(3.) THE respondents have submitted the return controverting the assertion and justifying the rejection of the application submitted by the petitioner.