RITESH INDUSTRIES LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) In this petition, the petitioner has prayed for quashing notices, annexure P.4 dated August 17, 2000 and P.5 dated March 21, 2002 and certificate annexure P.7 dated July 5, 2002 issued by Director, Dairy Development, Punjab (respondent No. 2) for recovery of the cess under the Punjab Dairy Development Board Ordinance, 2000 (for short, "the Ordinance") and the Punjab Dairy Development Board Act, 2000 (for short, "the 2000 Act").

(2.) With the avowed object of availing the benefit of incentives offered by the Government of Punjab under the Package of incentives, 1992, the petitioner set up a milk processing plant at phase VIII, Focal Point, Ludhiana, in 1995. After commencement of commercial production, it applied for exemption from payment of tax in terms of Package of Incentives, 1992. General Manager, District Industries Centre, Ludhiana issued eligibility certificate, annexure P.2 dated September 3, 1996, entitling the petitioner to get tax exemption for a period of 7 years commencing from September 3, 1995 with a maximum limit of Rs. 2,23,99,281. This was reflected in the order of assessment dated August 27, 2001 (annexure P.3) passed by Assessing Authority, Ludhiana.

(3.) During the currency of the period of exemption, the State of Punjab issued the Ordinance for levy of cess and in exercise of the power vested in him under the Ordinance, respondent No. 2 issued notice, annexure P.4, to the petitioner requiring it to pay cess at the rate of 10 paise per litre of the milk manufactured by it. However, no further action was taken in the matter apparently because of the pendency of writ petitions in which the vires of the Ordinance, which was subsequently replaced by the 2000 Act, had been challenged.