PROTECTION MANUFACTURERS PVT LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) The Petitioner challenges the decision dated 18th January 2008 of the Director of Industries, Orissa (DoI) (Opposite Party No.2), holding that the Petitioner is not a new unit under the Industrial Policy Resolution 1996 (IPR 1996); not entitled to priority industry status and is also not entitled to claim sales tax incentives under Clause 5.6 (Part-II) of IPR 1996, thereby upholding the cancellation of the Sales Tax Eligibility Certificate issued in favour of the Petitioner on 15th October, 2005.

(2.) The background facts are that the Petitioner was initially a Small Scale Industry (SSI) having been registered as such on 21st December 1996, with the District Industries Center, Bhubaneswar (DIC) (Opposite Party No.4). The Petitioner's unit was initially set up for manufacturing air coolers. It started commercial production with effect from 10th April, 1994. The Petitioner had earlier availed of the benefit under IPR-1989. The said benefit stood withdrawn with effect from 1 st July, 1999.

(3.) The Petitioner states that in order to expand its business, it undertook a diversification programme under IPR 1996 for manufacturing emergency lights, moulded furniture, TV sets (both black and white and colour) apart from the existing products being manufactured by it. It accordingly invested Rs.4,08,35,710/- and communicated this fact of diversification/modernization to the DIC, Bhubaneswar stating that it had in the process qualified as a Medium Scale Industry (MSI). The DIC, Bhubaneswar by its letter dated 29th December 2001, recommended to the DoI i.e. Opposite Party No.2 that the Petitioner's unit should be issued a Priority Industries Certificate (PIC) indicating the project cost in the aforementioned sum, after due verification.