BHASKAR INDUSTRIES LTD Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) This petition has been filed by the petitioner company being aggrieved by the order passed by the Revisional Authority dated 28.2.2015, whereby the revisional authority has granted cumulative exemption under the M.P. Commercial Tax Act, 1994 and the Central Sales Tax Act, 1956 only to the extent of 5100 M.T. of cotton yarn produced by the petitioner and has assessed the petitioner to tax at the regular rate beyond the aforesaid limit of production.

(2.) The learned counsel appearing for the petitioner submits that the petitioner company is engaged in the manufacture and sale of yarn from its industrial unit established in the industrial area, Mandideep, District Raisen. It is submitted that the petitioner had initially installed the industrial unit with the capacity of 4189 M.T. and had been granted exemption from payment of sales tax, purchase tax and central sales tax for a period of 9 years commencing from 29.3.1996 to 28.3.2005 and an eligibility certificate in this regard was issued to the petitioner as per the terms and conditions mentioned in notification no.A-3-24-94-ST-V(108) dated 6.10.1994 issued under Section 12 of the M.P. General Sales Tax Act, 1958 and Section 8(5) of the Central Sales Tax Act, 1956.

(3.) It is submitted that subsequently, the petitioner undertook expansion of the unit and increased the installed capacity by 911 M.T., thereby increase in total installed capacity to 5100 M.T. It is submitted that the petitioner again obtained a revised eligibility certificate in view of its expanded installed capacity on 29.5.2014. It is submitted that though the petitioner had obtained the aforesaid certificate, he was assessed to tax on its initial installed capacity. Being aggrieved by such assessment of tax, the petitioner ultimately approached this Court by filing Writ Petition No.13571/2010 and this Court considering the fact that the petitioner had obtained a revised eligibility certificate on 29.5.2014 remanded the matter back to the Assessing Authority for re-assessment after taking into consideration the aforesaid eligibility certificate. The petitioner has filed a copy of the order passed by this Court in Writ Petition No.13571/2010 dated 16.7.2014 as Annexure P/3 alongwith this petition.