DOSON CHEMICALS PVT LTD Vs. STATE OF ASSAM

JUDGEMENT

(1.) THIS appeal is directed against the judgment and order of the learned single Judge dated August 25, 1998 passed in Civil Rule No. 3748 of 1991 dismissing the petition. This appeal was conclusively heard on April 21, 2001. As the parties would like to furnish citations and some relevant documents to support their contentions, the order was reserved.

(2.) FACTS leading to filing the present writ appeal may, briefly be recited. The appellant is a private limited company. The appellant industry was established some time in the year 1961 as small-scale sector and it was registered with the respondent No. 5. It is stated that there were about 58 employees in the industry besides share-holders and directors. In order to boost industrial development the Government of Assam issued the Industrial Policy of 1982 and thereafter it was reviewed in 1986. It is stated that in the aforesaid policy of 1986 an existing unit which undertakes expansion, modernisation and diversification are also entitled to get incentives. Such units were also held to be eligible units under the policy and also entitled to get sales tax exemption and reduction of Assam finance (sales tax) for a period of 5 years.

(3.) THE Government of Assam for the purpose of regulating the incentive granted under the 1982 Policy passed an Act namely, the Assam Industries (Sales Tax Concessions) Act, 1986 and under the said Act a provision has been made for exemption of sales tax in respect of new industries as per the 1982 Policy and Rules are also framed thereunder. Thereafter, the 1982 Industrial Policy has been reviewed by the 1986 Industrial Policy. However, under the 1986 Industrial Policy the Government of Assam did not make any statutory provision for granting exemption to the existing industries by an enactment. The appellant, however, applied for granting of sales tax exemption to the taxation authority. However, the same was refused by the taxation authority by its letter dated April 12, 1990 and May 28, 1990 on the ground that the appellant industry is not a new industry and the provision of the Assam Industries (Sales Tax Concessions) Act, 1986 does not apply to it. Being aggrieved by the impugned letters dated April 12, 1990 and May 28, 1990 the appellant preferred a writ which was dismissed by the learned single Judge. Hence, the present appeal.