BIHAR EXTRUSION COMPANY LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) M /s. Bihar Extrusion Company Limited a company incorporated under the Companies Act, seeks writ of mandamus directing the respondents to disburse the balance 25% amount of interest free sales tax loan for the period from January 1986 to March 1987, and for sanction and disbursement of the balance amount of interest free sales tax loan for the remaining period in terms of the Industrial Policy Resolution (IPR) No.1153 dated 20.1.81 and IPR No. 13730 dated 1.9.86, as well as for sanction and disbursement of State Capital Investment subsidy in terms of the aforesaid policy resolutions.

(2.) SINCE the claim of the petitioner rests on the two Industrial Policy Resolutions aforesaid, it would be apt to briefly notice the relevant provisions thereof, as hereunder.

(3.) THE scheme regarding interest free sales tax loan contained in the 1981 Resolution provided that large, medium, small and tiny industries going into production on or after 1.10.79 will have the option either to avail of the total exemption from payment of sales tax on purchase of raw materials or to get a set off of amount paid as sales tax on purchase of raw materials against the amount of sales tax payable on sales of finished products. The facility was available for a period of five years for small industries, seven years for large and medium industries in non -backward districts and ten years in backward districts from the date of commencement of production. (The district of Singhbhum was included in the non -backward cat -gory). The scheme further provided that the interest free loan which was so far available on the basis of State Sales tax deposited from 17.11.80 will henceforth also include the amount realised by the State Government under the Central Sales Tax Act. The benefit was available to such industries which went into production before 1.10.79 but had not completed the period of eligibility available to them in the earlier resolution of the State Government and they were to continue to get the same incentive benefits for the remaining period of their eligibility.