SHREE JAGANNATH PACKERS Vs. STATE OF ORISSA

JUDGEMENT

(1.) THIS batch of writ petitions relate to withdrawal of sales tax incentives granted by the State Government of Orissa under different Industrial Policy Resolutions (in short, "ipr" ). Since common questions of fact and law arise in these writ petitions, they were heard analogously and are being disposed of by this common judgment.

(2.) FACTS of individual cases as stated in the writ petitions : O. J. C. No. 9967 of 1999 (Petitioner - Shree Jagannath Packers) : By IPR, 1989 the Government of Orissa declared, inter alia, that exemption will be allowed to new small-scale industrial units set up in the State of Orissa from tax on purchases of spare part's of machinery, raw materials and packing materials and on sale of finished products for a period of 7 years from the date of commencement of commercial production. This was followed up by Finance Department notifications under the Orissa Sales Tax Act, 1947 granting the said exemptions. Encouraged by the said declaration, the petitioner set up a small-scale industrial unit for manufacturing of card-board boxes and corrugated card-board boxes by investing money from his own personal resources as well as from out of the loans from the State Bank of India in the year 1991. A permanent registration certificate thereafter was granted by the General Manager, District Industries Center, Cuttack indicating therein that the date of commercial production of the small-scale industrial unit of the petitioner is September 11, 1993 and the petitioner was entitled to enjoy the aforesaid benefits of exemption from sales tax for a period of seven years up to September 11, 2000. The petitioner enjoyed the said benefits of sales tax exemption from September 11, 1993 but on July 30, 1999 Notifications Nos. 622 of 1999, 623 of 1999, 624 of 1999 and 625 of 1999 were issued by the Government of Orissa in the Finance Department withdrawing all such benefits with effect from the 1st August, 1999. Aggrieved, the petitioner has filed this writ petition praying for quashing the said notifications dated 30th of July, 1999. O. J. C. No. 13017 of 1999 (Petitioner - Larsen Toubro Co. Ltd.) :

(3.) UNDER IPR 1989 the State Government of Orissa declared, inter alia, that large scale industrial units would be eligible for deferment of payment of tax under the Orissa Sales Tax Act and the Central Sales Tax Act for a period of seven years from the date of commercial production. This was followed by appropriate notifications and Rules for deferment of tax under the Orissa Sales Tax Act and the Central Sales Tax Act. Encouraged by the said policy declarations and notifications, the petitioner made investment of Rs. 25,36,809 on acquisition of land and a further investment of Rs. 2,117. 35 lakhs on construction of factory buildings and installation of plant and machinery and set up an industry with an installation capacity of manufacturing 1,920 metric tonnes of continuous casting refractories and started commercial production on 1st February, 1993. The Director of Industries, Orissa, also issued a certificate of eligibility in favour of the petitioner certifying that the industrial unit of the petitioner was a large scale industrial unit and was eligible for deferment of payment of tax for a period of seven years from the date of commercial production as per IPR 1989. For availing benefit of deferment of sales tax, the petitioner executed an agreement with the Industrial Promotion and Investment Corporation of Orissa Ltd. on 23rd of August, 1993 agreeing to the various terms and conditions for availing sales tax deferment facilities for the period from 1st February, 1993 to 31st January, 1995. Thereafter the petitioner enjoyed the sales tax deferment facilities on the finished products for a period of 5 years from 1st February, 1993. The petitioner then requested the Director of Industries, Orissa, to issue the eligibility certificate for the sixth year from the date of commercial production by letter dated 23rd July, 1999, but the petitioner was informed in January, 2000 that the requisite eligibility certificate for deferment of payment of tax for the sixth and seventh years after commercial production cannot be issued in view of the Notifications S. R. O. Nos. 623, 624 and 625 dated July 30, 1999, withdrawing the benefit of deferment with effect from 1st of August, 1999. Aggrieved, the petitioner has filed this writ petition for quashing the said three notifications. O. J. C. No. 4297 of 2000 [petitioner - Kali Oil Mills (P) Ltd. ] :