MANJUSHREE EXTRUSIONS LTD Vs. STATE OF ASSAM

JUDGEMENT

(1.) All these 9 cases were taken up together for hearing since common question of facts and law were involved with little variation of facts in Civil Rule No. 1224 of 1997 M/S. S.M. Ispat Ltd. & (Ors. -Vs- State of Assam and Ors. and Civil Rale No. 2382 of 1997 M/S. United Soft Drinks (P) Ltd. -Vs- State of Assam and Civil Rule No. 2672 of 1997, Kamakhya Udyog Pvt. Ltd. -Vs- State of Assam.

(2.) The legality and the validity of the provisions of the Assam Industries (Sales Tax Concession) Scheme, 1995 envisaging sales tax exemption in respect of industries undertaking expansion, modernisation and diversification confined to the increase in production after expansion, modernisation and diversification are primarily challenged in these proceedings.

(3.) The writ petitions, inter alia, recounted the Industrial Policy of the State Government commencing from the year 1982 which provided for incentives to the new industries established within the State of Assam by way of sales tax exemption for a period of 5 years on the sales of finished products as well as on the purchase of raw-materials. The State Government, thereafter introduced a new industrial policy whereby incentives were offered to the new industries established in the State as well as to the existing industries undertaking expansion, modernisation and diversification. The Assam Industries (Sales Tax Concession), 1986 was enacted in the year 1987 amending certain provision of the existing Sales Tax law and granting sales tax exemption to the new industries. According to the petitioners, the above Act was made applicable to the new industries established within 15.10.1982 to 31.3.1990 and therefore the said Act does not have bearing whatsoever to the industries set up after said period. In the year 1991 the Government of Assam announced a new Industrial Policy where by incemtives were offered by way of sales tax exemption for a period of 7 years to the new industries as well as the industries undertaking expansion, modernisation and diversification. The exemption was granted on the sale of finished products as well as on the purchase of raw-materials.