JAIPRAKASH ASSOCIATES LIMITED Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) THE present writ petition was heard on 18.6.2011 and thereafter again on 11.1.2012. Present writ petition has been filed with the following prayers: -

(2.) IT appears the State of Himachal Pradesh after visualizing that the cost of production was higher in its hilly State in comparison to the production from Industrial Units in neighbouring States, as such, incentive in the form of concessions were required to be given to the Industrial Units.

(3.) 'Rule 19' of the said 'Rules -2004' provides that the goods manufactured in new Industrial Units set up in Tax Free Zones / (Category -C Area) shall be exempted from payment of any State taxes and duties (excluding levies in the shape of cess, fees, royalties etc.) for a period of 10 years from the date of commencement of commercial production or the date of notification by the concerned Department(s), whichever is later. Rule 19(1) reads as under: 19.1 -All new industrial units set up in the Category -C areas of the State as notified from time to time shall be exempted from payment of any State Taxes and duties (excluding levies in the shape of cess, fees, royalties etc.) for a period of 10 years from the date of commencement of commercial production or the date of notification by the concerned Department(s), whichever is later.