HIMACHAL CONDUCTORS PRIVATE LTD Vs. DEPUTY EXCISE AND TAXATION COMMISSIONER HIMACHAL PRADESH SOUTH ZONE SIMLA-3

JUDGEMENT

(1.) THE question involved in this writ petition is whether the petitioners herein are liable to pay Central sales tax on the turnover of their inter-State trade for the assessment year 1972-73 under section 8(2A) of the Central Sales Tax Act, 1956, in view of the fact that the goods in question have been exempted from the States sales tax by virtue of the Incentive Rules framed by the Government on 12th April, 1971, and the subsequent notification issued on 27th May, 1974, by the State Government under section 42 of the Himachal Pradesh General Sales Tax Act, 1968.

(2.) SHORT facts of the case are that petitioner No. 1 is a private limited company which has established an industry at Saproon in Solan District of the State for manufacturing electric goods. On 12th April, 1971, the Government of Himachal Pradesh issued a notification by virtue of which several rules were farmed "regarding grant of incentives to new and already established industries in the Pradesh". According to these rules, new industries as well as established industries were given different types of incentives and one of such incentives was with regard to sales/purchase tax. This particular incentives was given by rule 3(4)(c), which reads as under :

(3.) THE case of the petitioners is that relying upon these Incentive Rules they invested good deal of capital, purchased machinery, bought land, erected buildings and made capital investment of about 15 lacs of rupees.