SAI IRON INDIA LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) This writ petition has been filed challenging the order, dated 21-2-2003 passed by the Director of Industries, Bihar (Copy at Annexure-13/A). By the impugned order the Director of Industries rejected the claim of power subsidy for the period March 1996 to December, 2000 amounting to Rs. 8,00,500/-, made by the petitioner under the State Government's Industrial Incentive Policy, 1993. The claim is rejected on two grounds: (i) on corning into force of the industrial Policy, 1995 the petitioner failed to exercise its option and did not give in writing that it would avail of the benefits under the Industrial Policy, 1993 and (ii) in any event the industrial Policy, 1993 had expired on 31-3-1998 while the claim of the petitioner was upto December 2000 i.e. for a period beyond the term of 1993 Policy.

(2.) The State Government in the department of Industries announced Industrial Policy, 1993 under which a number of incentives/benefits were promised and provided to the industrial units being set up and coming into production between the period April, 1993 to March, 1998. On behalf of the petitioner, which is a company incorporated under the Companies Act, 1956 it is stated that attracted and induced by the promises made in the industrial Policy, 1993 it set up an industrial unit for manufacture of M.S. Tor Steel, Angles, Channels and Agricultural implements. A temporary registration certificate for the unit was obtained from the District Industries Centre, Patna on 24-5-1994. For the purchase of Plant and Machinery, electrical equipments and construction of factory shed the petitioner applied for Bank loan and a term loan of Rs. 94 lacs was sanctioned by the Central Bank of India, Patna branch by letter dated 3-4-1995. The petitioner made its own investments of Rs. 73,21,587/- upto 31-8-1995 which was further increased upto Rs. 1,09,80,317/- upto 18-3-1996. It is stated on behalf of the petitioner and not denied by the respondents, that the newly set up unit started commercial production from 18-3-1996 and the petitioner was given permanent registration certificate by the General Manager, District Industries Centre, Patna by letter dated 20-3-1996. Thus the date on which the unit came into commercial production falls firmly between the period stipulated by the Industrial Policy, 1993 and according to the petitioner, it is entitled to the incentives benefits and privileges provided under the 1993 Policy.

(3.) It is further stated on behalf of the petitioner that its entitlement to the benefits under the 1993 policy was never in question and under the provisions of that policy it was granted exemption from payment of sales tax on purchase of raw materials and on sales of finished products vide certificate of exemption, dated 5-2-1997 issued under notifications S.O. Nos. 95 and 96, dated 4-4-1994.