SALSON LIQUORS PVT LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioner has filed the present writ application for quashing the order dated 3.5.2002, as contained in Annexure 9, passed by the State Level Committee, constituted by the State Government vide S.O. letter no. 480 dated 22.12.1995, rejecting the application filed by the Petitioner for grant of eligibility certificate for deferment of tax and for a direction to the aforesaid Committee to issue eligibility certificate.

(2.) THE facts, which are not in dispute, are that the petitioner is a company incorporated under the provisions of the Companies Act and its shareholders and Directors are citizens of India. The company is registered under the provisions of the Bihar Finance Act as well as under the Central Sales Tax Act. The State Government came out with an industrial policy in the year 1995 giving different types of incentives to the new industrial units or old industrial units increasing their production. One of the incentives was for grant of deferment from payment of sales tax to new industrial units. A copy of the said industrial policy of the State Government has been annexed as Annexure '1 '. In terms of the aforesaid policy, the Commercial Taxes Department of the State Government issued a notification under section 23A of the Bihar Finance Act, giving benefit of deferment of sales tax on sale of finished goods to the new industrial units going for production between 1.9.1995 to 31.8.2000, provided they have been granted eligibility certificate by the authority mentioned in the said notification. A copy of the said notification has been annexed as Annexure 2.

(3.) THE petitioner claims that it established a new unit and went into production on 15.3.2002 and invested immovable properties to the extent of Rs. 1,66,48,972=00. It applied on 3.4.2000 for grant of benefit of deferment of Sales tax before the State level Committee on the ground that it is eligible for the same as it has started the production in between the period 1.9.1995 to 31.8.2000. It further stated that its unit was registered with the Department of Industries, Government of Bihar on 27.3.2000, a copy of which is Annexure 4. In pursuance of the aforesaid application, the petitioner 'spremises were inspected by the concerned authorities to find out as to whether it is eligible for the grant of deferment in payment of sales tax but no decision was taken and the petitioner came to this court in C.W.J.C. No. 13940 of 2001 and this court, by order dated 17.10.2001 (Annexure 7) directed the State Level Committee to dispose of the matter within three months from the date of receipt/production of a copy of the order. It appears that the matter was not disposed of within time and a contempt application being M.J.C. No. 420 of 2002 was filed and during the pendency of the matter, the State Level Committee has rejected the claim of the petitioner by the impugned order dated 3.5.2001, a copy of which has been appended as Annexure 9 to the writ petition.