SHREE DURGA OIL MILLS Vs. SALES TAX OFFICER

JUDGEMENT

(1.) THE petitioner No. 1, a new oil industry has prayed for quashing the assessment order under section 12 of the Orissa Sales Tax Act, 1947, a copy of which is annexed to the writ application as annexure-1.

(2.) IT has been alleged in the writ application that relying on the Industrial Policy Resolution of the Government of Orissa for the period 1979-83 (annexure-2) the petitioners' firm applied for setting up an industry at Betnoti in the district of Mayurbhanj and obtained a provisional registration certificate from the District Industries Centre, Mayurbhanj, on 28th November, 1979 (annexure-3 ). The petitioners' firm was granted a permanent registration certificate as a small-scale industrial unit by the Director of Industries, Orissa, on 10th April, 1980 vide annexure-4. The industrial unit was granted a production certificate (annexure-5) certifying that it started production on 19th March, 1980. The certificate of registration granted under section 9 of the Orissa Sales Tax Act was issued with effect from 25th September, 1980 and has been thereafter renewed from time to time as would be evident from annexure-7 series. Clause 8 of the Industrial Policy Resolution effective for the period 1979-83 provides that village cottage and tiny industries certified as such by the State Government and small-scale industries shall be exempted from purchase/sales tax for five years on construction materials, raw materials, machinery and packing materials. S. S. I. units in non-backward areas will, however, be entitled to this exemption for four years. The petitioners allege that relying on the representation made in the Industrial Policy Resolution of the Government of Orissa for the period 1979-83 it proceeded to set up an industry and incurred a heavy loan from the United Bank of India for the purpose. Raw materials for the industry, namely, groundnut, mustard seed, etc. , were purchased by the petitioners and exemption from levy of purchase tax was claimed by the petitioners on the basis of the aforesaid clause contained in the Industrial Policy Resolution REFERRED TO above. The Sales Tax Officer (opposite party No. 1) rejected the said claim of exemption on the ground that there is no notification under section 6 of the Orissa Sales Tax Act, 1947, by his order in annexure-1 which has been impugned in this writ application. Thus the main question that arises for consideration in this writ application is whether the State can rescind from its representation of granting exemption from purchase/sales tax to new small-scale industries after the representation was acted upon.

(3.) LEARNED Standing Counsel appearing for the Sales Tax Officer (opposite party No. 1) in answer to the claim in the writ application submitted that the industrial policy in annexure-2 is ineffective and unenforceable as there has been no corresponding notification under section 6 of the Orissa Sales Tax Act.