JAGDAMBA INDUSTRIES Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) THE order passed in this petition shall also govern the disposal of Miscellaneous Petition No. 2204 of 1987 (Shriram Dall Mill, Kolaras v. State of M. P. and 3 Others) as both these petitions raise identical and common questions which may be resolved by a common order.

(2.) IN both the petitions, the question of interpretation of a Notification F. No. A-3-41-81 (35)-ST-V dated 23rd October, 1981, issued under Section 12 of the M. P. General Sales Tax Act, 1958 (No. 2 of 1959), which is filed as annexure-B in M. P. No. 2710 of 1987 is involved which relates to exemption of sales tax to the new industrial units set up after 1st April, 1981 in terms of said notification and a subsequent Notification No. A-3-52-87-ST-V (29) dated 3rd July, 1987, filed as annexure-G, amending the earlier notification of 1981 referred to above. Both the petitions came up for hearing on admission before a Division Bench of this Court on 7th August, 1987 and during the arguments an order dated 7th October, 1986 passed by another Division Bench of this Court, in which one of us (Faizanuddin, J.) was a member, in Miscellaneous Petition No. 1861 of 1983 (G. S. Dall and Flour Mills v. State of M. P.), was referred to in support of these petitions, wherein it was held that even the traditional industries like dall mills are also covered by 1981 notification referred to above and that such traditional industries are also entitled to the grant of eligibility certificate to claim exemption from payment of sales tax. . The Division Bench hearing these two petitions was of the opinion that the said order rendered in G. S. Dall and Flour Mills (M. P. No. 1861 of 1983 dated 7th October, 1986-Madhya Pradesh High Court) required reconsideration as the aspect does not appear to have been brought to the notice of the Division Bench that the notification dated 23rd October, 1981 was not a notification which laid down the terms and conditions in the matter of grant of eligibility certificate and that the said notification, in column No. (3), only provided that the exemption shall be available to an industry mentioned in column No. (1) only if it had obtained eligibility certificate and produced the same at the time of assessment. The said Division Bench also expressed the opinion that the terms and conditions for grant of eligibility certificate were such as laid down by the Industries Department and the question as to whether a particular industry was or was not entitled to the grant of eligibility certificate was to be considered with reference to such rules or instructions as may have been issued by the Industries Department in this behalf from time to time. Since the questions _ involved in these two petitions are frequently raised in various petitions, therefore, the Division Bench felt it desirable to refer the matter for decision by a Full Bench of this Court. This is how these two petitions have been placed before this Full Bench for hearing and decisions.

(3.) THE material facts which gave rise to these petitions may briefly be stated thus : All the petitioners in the two petitions except petitioner No. 3 (which is a proprietary concern of Purshottam Das) are registered partnership firms having been established on various dates in the year 1983, and running dall mills at places within the District of Guna (M. P. ). They are also registered with the Industries Department as small-scale industries. They are also registered dealers under the M. P. General Sales Tax Act, 1958 as well as under the Central Sales Tax Act, 1956.