IPITATA SPONGE IRON LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) IN order to accelerate the pace of industrial growth in the State and to attract industrialists to set up industries in industrially backward areas, the State of Orissa adopted a new industrial policy in 1980 (hereinafter described as "the Policy of 1980" ). One of the incentives provided for the said Policy of 1980 was regarding sales tax. For large/medium industries it was provided in the Policy of 1980 that :

(2.) IN pursuance of the said Policy of 1980 the State Government framed Orissa Sales Tax Loan Rules, 1980 laying down the method and procedure for claim, determination, sanction, disbursement, repayment and recovery of the said sales tax loan.

(3.) UPON a review of the success of the Policy of 1980 the State Government introduced a revised industrial policy in 1986 on and from April 1, 1986 (hereinafter referred to as "the Policy of 1986" ). The Policy of 1986 was not made applicable to continuing industries which were defined as those industries, which had made any kind of investment before April 1, 1986 (the effective date) or/and availed of themselves of any incentive or facility under the Policy of 1980. In other words, the benefits under the Policy of 1986 were made available only to those new industrial units for which investments were made after April 1, 1986.