TIS FAB LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) In order to implement the State Government's Industrial Policy, 1995, the Governor of Bihar in exercise of power conferred by Sub-section (3) of Section 7 of the Bihar Finance Act, 1981 (hereinafter referred to as "the Act") issued a notification dated December 22, 1995 (hereinafter referred to as "the notification") providing incentives to the entrepreneurs to establish new industrial units and/or to expand the old ones. The notification contains package of relief in the form of exemption from payment of sales tax to those industries in which the production starts between September 1, 1995 to August 31, 2000. In order to avail of the relief under the notification the entrepreneurs were required to move the application along with requisite documents including a certificate from the Director of Industries.

(2.) The petitioner moved an application dated February 13, 1996 within time before the Deputy Commissioner, Commercial Taxes, Adityapur, Circle Jamshedpur (hereinafter to be referred to as "the Deputy Commissioner") seeking exemption certificate under the notification so as to avail the benefit of exemption from payment of sales tax. Vide order dated May 27, 1997 the Deputy Commissioner rejected the petitioner's application. The petitioner filed a revision challenging the above order of the Deputy Commissioner before the Commissioner, who vide Order dated June 6, 1997 allowed the revision and set aside the order of the Deputy Commissioner holding that the Deputy Commissioner has no jurisdiction to pass such an order on the application for exemption. The matter was, accordingly, remanded to the Joint Commissioner for decision. The Joint Commissioner thereafter rejected the petitioner's application vide order dated November 5, 1997 on the ground that the petitioner has not filed the certificate of the Director of Industries certifying the date of production. A true copy of this order has been filed as annexure 19 to the amendment petition. Being aggrieved thereby the petitioner has filed this writ petition.

(3.) The respondents have filed a counter-affidavit and the petitioner has filed a rejoinder affidavit in reply thereto. We have heard the learned counsel for the parties.