AMBE AGRO INDUSTRIES LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The matters involved in both the writ applications arc one and the same and as such they have been heard together and are being disposed of by this common order.

(2.) The petitioners in both the writ applications are companies registered under the Companies Act, 1956 and they have set up food processing units for manufacture of wheat products, namely, atta (wheat flour), maida, suji and bran in Patliputra industrial area in the town of Patna.

(3.) The State Government with a view to accelerate the industrial growth in the State of Bihar introduces the Industrial Policies from time to time. By notification dated December 22, 1995 it came out with an Industrial Policy giving several incentives to the new industrial units as well as to the old industrial units having undergone expansion/diversification. One of the incentives was to grant exemption from payment of sales tax on purchase of raw materials and sale of finished products. A copy of the said industrial policy has been annexed as annexure-1 to both the writ applications. The exemption with regard to sales tax on sale of finished goods for new units has been contained under Clause 16.2 of the said policy which runs as follows :