PURVI BHARAT STEELS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The main dispute raised in these two Writ Petitions revolves around the question as to whether the Petitioner is entitled to pay concessianal rate of central sales tax under the Central Sales Tax (Orissa) Rules, 1957 (CST (O) Rules for short) @ 1 %, by enjoying the status of a small scale industrial unit, in view of the order issued by the Government of India, in the Department of Industrial Policy & Promotion dated 10.12.1997, under which the existing medium scale industries were given the option to be registered as a small scale industrial unit, by making application in that regard, within 180 days from the date of publication of the said order.

(2.) The brief facts of the case common to both the Writ Petitions are that the Petitioner's industrial unit was initially registered as a medium scale industry under Government of India in the Ministry of Industry, vide Licence No. 3297/SIA/IM/14/95 dated 03.07.1995, for establishing a Steel Plant in Orissa with an installed capacity of producing 1300 M.T. of structural steel. Subsequently, with the establishment of the Steel Plant at Bainchua, in the district of Cuttack in Orissa, having a fixed capital investment in land, building, plant & machinery of Rs. 2,35,60,000, Petitioner's industrial unit was registered with the Director of Industries, Orissa, as a medium scale industry, with the date of commencement of commercial production as 17.3.1997. The said industry was granted with eligibility certificate dated 24/26.12.1997, issued by the Director of Industries, Orissa, certifying that the Petitioner's industry is a new medium scale industry & is eligible for sales-tax concession on raw material, machinery, spare parts, packing materials & finished products, for a period of five years from the date of commercial production, as provided under Industrial Policy. Resolution, 1996 of the Government of Orissa.

(3.) While the Petitioner's industry was enjoying the benefits as a medium scale unit, extended by the State of Orissa under Industrial Policy Resolution, 1996, the Government of India, in the Department of Industrial Policy & Promotion under the Ministry of Industries, issued Order Dated 10.12.1997 (Annexure-1), reclassifying the categories of industries & providing that an industry in which investment in fixed assets in plant & machinery does not exceed Rs. 3 crores, is to be treated as a small scale industry. The said re-classification was subject to the owners of the industrial units applying for such change of status & getting themselves registered as a small scale industrial unit within 180 days of publication of the said Order Dated 10.12.1997.