MANJUSHREE EXTRUSIONS LIMITED Vs. STATE OF ASSAM

JUDGEMENT

(1.) All these above mentioned appeals have been preferred against a common judgment and order dated 29.4.98 passed by the learned Single Judge dismissing the writ petitions by upholding the validity of the impugned provisions of the Assam Industries (Sales Tax Concession) Scheme, 1995.

(2.) Facts leading to filing of the writ petitions and the appeals, in a narrow campus, may be stated as follows. With a view to boost the industrial development in the State of Assam the State Government introduced a number of Schemes offering incentives and subsidies for certain period, extending the policy time to time. These limited benefits relating to industrial policy of the State have been offered to commercial production of the industrial units falling under a particular scheme during their initial stage as an incentive. First such incentive Scheme was started vide notification dated 8th November, 1969. With the change of time necessity for revision in this incentive scheme was felt, hence, the Government by notification dated 12.10.82 announced a new package of incentive known as 1982 Scheme, which envisaged and provided for grant of sales tax exemption to the new industrial units on the purchase of raw materials and sale of finished products for a period of five years from the date of commencement of the commercial production. But, this exemption of sales tax was subject to the production of the eligibility certificate from the Udyog Vikash, which is the main implementing agency.

(3.) Again in the year 1986 the State Govt. announced a new package of incentives (1986 Industrial Policy) vide notification No. CI-386/ 86 dated 25.12.86 fixing the period from 1.1.87 to 31.3.90 which was subsequently extended to 31.3.91. In this 1986 Scheme also State Govt granted sale tax exemption to the new industries as well as to the industries undertaking expansion, modernisation and diversification for a period of 5 years from the date of commercial production. Accordingly the State Legislature enacted Assam Industries (Sales Tax Concession) Act, 1986. This enactment was made with a view to consolidate and amend the provisions of the law relating to sales tax in the matter of concession to the industries which come within this scheme and further Rules were made and notifications were issued in order to give effect to the provisions of the Act.