MIKKIWIREWORKS Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner seeks a declaration that it is entitled to exemption from payment of sales tax on purchase of raw materials with respect to its expanded/diversified unit under notification No. S.O. 793 dated September 10, 1987 issued under Section 7(3) (b) of the Bihar Finance Act, 1981, and accordingly further seeks quashing of the order as contained in Annexure-5 dated July 12, 1995/August 4, 1995 by which the exemption certificate granted earlier to it has been cancelled.

(2.) In order to accelerate the pace of industrial growth in the State the Government of Bihar has taken policy decisions from time to time giving incentives of various kinds to the industrial units in all sectors, small, medium and large, such as, interest-free loan, deferrent of sales tax, exemption from payment of sales tax on purchaser of raw materials, etc. One such policy presiding for exemption from payment of sales tax on purchaser of raw materials, with which we are concerned in this case, is contained in resolution No 13730, dated September 1, 1986. The relevant part of the resolution regarding exemption from payment of sales tax 01 purchaser of raw materials runs as follows :

(3.) It would be appropriate to quote the relevant portions of the two notifications as hereunder :