ASSAM TIN MANUFACTURING COMPANY Vs. COMMISSINER OF TAXES

JUDGEMENT

(1.) This writ petition is mainly directed against the assessment order for the periods ending 31.3.89 and 30.9.89 under the Assam Finance (Sales Tax) Act, 1956.

(2.) The petitioner is a registered dealer under the Assam Finance (Sales Tax) Act, 1956 and submitted its returns of turnover before the Superintendent of Taxes. According to the petitioner/Company, it claimed far exemption from payment of sales tax on the basis of Eligibility Certificate issued by the Udyog Sahayak and accordingly, no tax was deposited. The assessing authority rejected the claim of the petitioner since the unit is an old unit and the assessment was accordingly made. Two revision petitions were presented before the Joint Commissioner of Taxes questioning the order of assessment on the face of the Eligibility Certificate granted by the Udyog Sahayak. The Joint Commissioner of Taxes, upon hearing the parties and on considering the materials on record, held that only the new Industrial units were entitled for exemption from payment of taxes as per the provisions of the Assam Industries (Sales Tax Concession) Act, 1986. Since the exemptions from payment of sales tax were permissible only to the new units in which effective steps for establishment of the industries were taken on or after 15.10.82 but before 31.3.90, which was not the case so far as it related to the petitioner/company, the Joint Commissioner dismissed the revision petitions. Hence this writ petition assailing the legality of the order dated 4.12.1992.

(3.) The petitioners mainly based their claim of exemption on the basis of the Incentive Scheme of 1986 announced by the Govt. of Assam which provided amongst others, for granting of Sales Tax exemption to the specified units. As per the Scheme, the new package of incentives was operative for the period from 1.1.87 to 31.3.90 or till such time that the Government may deem it fit to continue. As per the Scheme, only the new units set-up on or after 1.1.87 and the existing units undertaking expansion, modernisation or diversification, at the same location or at any other place in the State of Assam, would be eligible for incentives under the 1986 Incentive Scheme on fulfilment of the conditions specified therein. The Scheme provides that expansion/modernisation/ diversification of an existing industrial unit will also be eligible for the incentive if the total capital investment on plant and machinery for expansion/modernisation or diversification as the case may be, was more than twenty five percent of the total fixed capital investment of the existing unit. The Scheme itself indicated that no right or claim for any incentive under the Scheme was conferred merely on fulfilment of the conditions specified in ths scheme. The Scheme indicated about the eligibility certificates and the implementing agencies. One of the incentives under the aforesaid Scheme of 1986, related to sales tax exemption. Sales tax was exempted on purchase of raw materials and sales of finished products for a period of five years as may be decided by the Government from time to lime. According to the petitioners, since the Company fulfilled all the requirements and in fact the Company was favoured with an Eligibility Certificate which was valid from 1,6.88 to 1.6.89, The Udyog Sahayak-issued another Eligibility Certificate to the petitioner/ Company in continuation of the earlier Eligibility Certificate granting exemption from payment of Sales tax for a period of five years from 1.6.88 to 28.2.93.