CRYSTAL TOWERS Vs. COMMISSIONER OF COMMERCIAL TAXES ORISSA

JUDGEMENT

(1.) REFUSAL by the Sales Tax Officer, Rourkela II Circle, Panposh (opposite party No. 4) to issue form I-D to avail benefits of exemption under the Orissa Sales Tax Act, 1947 (in short, "the Act"), and the Orissa Sales Tax Rules, 1947 (in short, "the Rules") is the subject-matter of challenge in this writ application. According to the Revenue, the petitioner is not entitled to use the forms as its unit was not set up within the prescribed period as stipulated in the Industrial Policy Resolution, 1989 (in short, "IPR") which is the foundation for the claim.

(2.) RESPECTIVE stands of the parties and the factual position which is almost undisputed needs to be noted in brief. Petitioner's case in brief is that it had set up a small-scale industrial unit during the period 1990-92 and first investment towards fixed capital was made during January, 1992. Commercial production was started on May 18, 1995. Therefore, said unit was set up after December 1, 1989, and had gone into commercial production thereafter. The twin circumstances are sufficient to get the benefits. The Project Manager, District Industries Centre, Rourkela (opposite party No. 3) (in short, "DIC") certified that the petitioner was entitled to exemption from payment of sales tax on purchase of raw materials and sale of finished products under the IPR. By letter dated September 28, 1996, petitioner requested the concerned Sales Tax Officer for issuing form I-D in order to enable it to avail said exemption. By letter dated November 18, 1996, opposite party No. 4 rejected the application on the ground that in terms of S.R.O. No. 789 of 1990, the Finance Department in Orissa Gazette dated August 16, 1990 indicated that only those unit which started commercial production between December 1, 1989 and November 30, 1994 are eligible to avail the benefit of tax exemption under the IPR. As commercial production was started with effect from May 18, 1995 as revealed from the certificate issued by the DIC, the benefits under the IPR relating to exemption on payment of tax as provided under section 6 of the Act are not available to the petitioner.

(3.) AN affidavit has been filed by the Assistant Manager, D. I. C., Rourkela, to the effect that first fixed capital investment was made on January 20, 1992 though commercial production started on May 18, 1995. It has been stated that entry 26-FF clearly states that a unit set up after December 1, 1989 and starting commercial production thereafter will be eligible for exemption, and therefore, the DIC has given exemption certificate and it has nothing to comment on the view expressed by the Sales Tax Department.