NABA BHARAT FERRO ALLOYS Vs. STATE OF ORISSA

JUDGEMENT

(1.) These batch of four writ petitions are directed against the orders of reassessment for the years 2000-01, 2001-02, 2002-03, and 2003-04, passed by the Sales Tax Officer, Dhenkanal Circle, Angul, disallowing the benefit of deferred payment of sales tax extended by the State Government under Industrial Policy Resolution, 1992, which had been allowed in the original orders of assessment and confirmed in appeals and demanding tax for the entire period.

(2.) The facts of the case as detailed in the writ petition are that the Government of Orissa in the Industries Department formulated the Industrial Policy Resolution, 1992, (for short 'IPR-1992'), which was published in the Orissa Gazette on 1.8.1992. The policies outlined in IPR-1992 was intended to encourage the flow of investment and development of entrepreneurship in the State of Orissa. While financial assistance to the potential entrepreneurs in the form of subsidies and post-production benefits was envisaged, the main thrust of the policy was on creating an environment conducive to the smooth setting up and successful functioning of industries. The said policies detailed in IPR-1992 offered several incentives to the new industries as well as for expansion/modernization/diversification of existing industrial units, with effect from 1.8.1992, including the incentive for exemption/deferment of sales tax.

(3.) Para 7.4 of the IPR-1992 provided for sales tax incentive, which reads as under;