LARSEN AND TOUBRO LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) This batch of writ petitions, namely, O.J.C. Nos. 1171 of 1996, 13293 of 1996, 13294 of 1996, 2176 of 1996 and 2435 of 1997 at the instance of Larsen and Toubro Ltd. as also O.J.C. No. 854 of 1996 by Kehar Agencies have been heard analogously for great length of time. As all these writ petitions raise similar points of facts and law for adjudication these are disposed of by this comprehensive judgment.

(2.) CERTAIN relevant dates and materials have been given to appreciate the background of the cases and the course of events. An Industrial Policy Resolution was introduced by Government of Orissa on December 23, 1989 (hereinafter referred to as 'the IPR'). The petitioner, Larsen and Toubro Ltd. was granted a provisional registration certificate under Section 9C of the Orissa Sales Tax Act, 1947, and under Section 7(2) of the Central Sales Tax Act, 1956, with effect from January 23, 1992 and August 29, 1992 respectively. Its industry was set up with a capacity of 0.7 million tonnes of cement per annum at a project cost of about Rs. 80 crores at Kramira in the district of Sambalpur on or about August 1, 1993. It applied to the Director of Industries for necessary exemption certificate under the IPR through D.I.C., Sambalpur on September 6, 1983. The petitioner's industry started its commercial production on or about September 10, 1993. The finished products, i.e., cement was first despatched to its own cement project at Hirmi in the district of Raipur as inter -State transaction on September 10, 1993. The Sales Tax Officer, opposite party No. 3, was informed by the petitioner, Larsen and Toubro Ltd. regarding the approach made by it to the Director of Industries for necessary exemption certificates under the I.P.R. on September 15, 1993 the petitioner requested the Sales Tax Officer, opposite party No. 3, to convert its provisional registration to permanent registration under Section 9 of the Orissa Sales Tax Act w.e.f. September 10, 1993. The petitioner, however, received a copy of the letter from the General Manager, D.I.C., opposite party No. 6, addressed to the Sales Tax Officer, opposite party No. 3, to the effect that the petitioner -company is a large scale industry manufacturing cement and have started commercial production on September 10, 1993.

(3.) THE Sales Tax Officer, opposite party No. 3, disposed of the petitioner's refund application holding that the petitioner had deposited Rs. 1,00,000 on October 20, 1993 as per the interim order of this Court and the unit being exempted from payment of sales tax under the I.P.R. the petitioner was eligible to get refund of such amount or to adjust against any other payment due against it. Said communication was made on January 9, 1996. The petitioner received assessment orders dated January 9, 1996 made by the Sales Tax Officer, opposite party No. 3, both under the O.S.T. and C.S.T. Acts demanding a sum of Rs. 86,43,212 and Rs. 2,18,13,874 respectively on January 17, 1996. The petitioner received a letter dated January 29, 1996 from the Sales Tax Officer, opposite party No. 3 on January 30, 1996 being called upon to show cause on or before February 7, 1995 as to why its application dated July 23, 1994 in form 'D' for exemption of tax should not be rejected because it had filed such application after a lapse of ten and half months which contravened the provisions as stipulated in Government Notification No. 27665 - -CTA -56/90 -F dated August 16, 1990. The petitioner on February 7, 1996 filed its reply to the show cause notice dated January 29, 1996.