INDO TEX PRINTS (OVERSEAS) LIMITED Vs. SECRETARY TO GOVT HARYANA, DEPARTMENT OF LOCAL GOVERNMENT AND OTHERS

JUDGEMENT

(1.) The petitioner prays for issuance of a writ of mandamus directing the Chief Administrator, Faridabad Complex Administration, Faridabad-respondent no.4 to grant benefit of a notification, issued by the State of Haryana, exempting new industrial units, from payment of octroi, for a period of five years.

(2.) Counsel for the petitioner submits that the State of Haryana has created different zones for the purpose of benefits to new industries. The area of the Faridabad Complex falls under zone "C". The petitioner Company established a manufacturing unit within the local area of Faridabad and filed an application for exemption from payment of octroi. Despite repeated representations, no action was taken. The petitioner eventually came to know that respondent no.4 is of the opinion on the basis of Notification dated 5.4.1985 (Annexure P-4) that exemption from payment of octroi can be granted only to those units which have a capital investment upto Rs. 50 lacs. The petitioner filed a writ petition which was disposed of by directing the respondents to decide the petitioner's representation. The representation was decided vide order dated 11.1.1994 (Annexure P-7), which is not only non-speaking, but has been passed without taking into consideration the latest policy decision of Department of Local Government as well as of the State of Haryana. Counsel for the petitioner further submits that the Department of Local Government, State of Haryana has issued Memo No. 5A-92/51162 dated 7.12.1992, clarifying that incentives will be made available to all units, irrespective of their capital investment. The power to grant exemption, under Section 84 of the Haryana Municipal Act, 1973 (for brevity, 'the Act') vests with the State. The State of Haryana having issued a notification, exempting all units irrespective of capital investment, the respondents may be directed to exempt the petitioner from payment of octroi.

(3.) Counsel for Faridabad Complex Administration-respondent no.4 submits that notification issued by State Government, exempts units with investment over Rs. 50 lacs from payment of octroi. The petitioner unit has admittedly been set up with an investment of more than Rs. 50 lacs. It is also contended that letter dated 21.12.1992 (Annexure P-5) written by the Director Industries, Haryana refers to a letter dated 7.12.1992 , but no such letter was written by the Local Government Department, Faridabad. The notification issued by the State of Haryana dated 5.4.1985, confines exemption from octroi to units which have a capital investment upto Rs. 50 lacs, subsists. The State of Haryana has not issued any other notification. We have heard learned counsel for the parties and perused the pleadings, the annexures and the impugned order.