SHREE PLASTICS P LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) This writ petition has been filed by the petitioner challenging the inaction of Opp. parties 4, 5 and 6, who are the Executive Officer, Administrator and Octroi Superintendent of Berhampur Municipality respectively, in granting certificate of exemption from payment of octroi in terms of Indusirial Policy Resolution 1996, (hereinafter referred to as the I.P.R. 1996') in respect of machineries and equipments which are required to set up new industrial unit under the said I.P.R. 1996.

(2.) THE case of the petitioner in short is that it is a Private Limited Company and being encouraged by various incentives including the incentives in respect of octroi provided under IPR 1996, the petitioner proceeded to establish an industrial unit for manufacturing of Rigid PVC pipes. And for the said purpose, the petitioner obtained 'Provisional Certificate' bearing Registration No. 150610289 dated 4.5.1996, 'No Objection Certificate' dated 5.8.1996 and 'Sales Tax Registration Certificate' both under Orissa Sales Tax Act, 1947 and Central Sales Tax Act, 1956, from the General Manager, District Industries Centre, Ganjam, State Pollution Control Board, Bhubaneswar and Sales Officer, Ganjam 1 Circle, Berhampur, respectively. The petitioner also obtained permission from Executive Officer, Berhampur Municipality for installation of 100 HP electric Motor. Thereafter the petitioner placed orders with the parties from outside the State of Orissa for supply of machineries and equipments which were required to set up industrial Unit for manufacturing of PVC pipe and made an application to Opp.party No. 4 for grant of 'Exemption Certificate' from payment of octroi oh the said machineries and equipments. The petitioner's further case is that the opp. party No. 8, General Manager, District Industries Centre, Ganjam, Berhampur vide his letter under Annexure -8 requested the Executive Officer, Berhampur Municipality to exempt the petitioner from payment of octroi on machineries required to set up its unit. When this yielded no result, the petitioner approached this Court in the present writ petition challenging the inaction of the opposite parties. This Court while issuing notice to the opp. parties, as an interim measure directed that any collection made shall be subject to the result of this writ application.

(3.) THE petitioner filed its rejoinder to the counter affidavit filed by opp. parties 4 and 6. In paragraph -2 of the rejoinder it is stated that the Government in the Department of Housing and Urban Development by exercising its power conferred under Clause (b) of Sub -section (1) of Section 188 -A of the Orissa Municipal Act, 1950 (Orissa Act 23 of 1950) and in consultation with the concerned Municipal Council and Notified Area Council issued notification dated 25.6.1997 to the effect that (i) machinery and equipment required for new industrial unit set up on or after the 1st March 1996 shall be exempted from payment of octroi levied by any Municipal Corporation/Municipality/NAC and; (ii) spare parts of machinery, raw materials and packing materials required for such new industrial units shall be exempted from payment of octroi levied by Municipal Corporation/Municipality/N.A.C. for a period of 5 (five) years from the date the industry first goes into commercial production. Relying on this notification it is stated that since the petitioner is an industrial unit and was set up after 1st March, 1996 and went into commercial production on 26.8.1997 under the I.P.R. 1996 and was engaged in manufacturing PVC pipes and conduit, the petitioner's case squarely falls under the above mentioned notification of the State Government. In support of his above contention, the petitioner has annexed Notification dated 25.6.1997 issued by the Government as Annexure -9 to the rejoinder. It is further stated that in view of the Government Notification dated 25.6.1997 (Annexure -9), the petitioner is entitled for octroi exemption and, accordingly Opp. parties 4 and 5 are liable for refund of the octroi amounting to Rs. 1,31,211.35 paise which has been collected from the petitioner as per details given in Annexure -10 series. It is also stated that the petitioner's unit was granted a Permanent Registration Certificate bearing No. 15/06/02924 by the General Manager, District Industries Centre for manufacturing of Rigid PVC pipes of all varieties allowing sales tax exemption for a period of five years from the date of starting of its commercial production i.e., 26.8.1997 as provided under I.P.R. 1996. The matter was listed on 5.12.2007 for hearing and the learned Counsel for the petitioner was present. Despite service of notice none appeared for Municipality. Learned Counsel for the State appeared and gave his parawise report on writ petition. The parawise report has been filed without being accompanied by affidavit. In the said report it is mentioned that the petitioner's unit is entitled for exemption of octroi on the machineries and equipments required to set up the new industries as per provision -II of the I.P.R., 1996.