RECKITT BENCKISER Vs. UNION OF INDIA

JUDGEMENT

(1.) As the issues involved in all the writ petitions in hand are similar, they shall stand disposed of by a common order.

(2.) In order to boost the industrial activity in the State of Jammu and Kashmir, so that the growth rate of industrial sector could be accelerated which could strengthen and broaden the infrastructure base of the State in general and industries in particular, minimize the unemployment problem, the State promulgated an Industrial Policy 1998-2003, 2004, which was to remain in operation till 31st of March 2015. As the desired results were not so good and there being no acceleration in the rate of growth of industrial sector primarily on account of the disturbed conditions in the State and competition from cheaper imported products coming into the country as a result of the policy of globalization and economic liberalization pursued by the Government of India, forcing many local Small Scale Industrial Units to down their shutters and increase in the problem of unemployment on account of saturation in the Government jobs, impelled the State of J&K to approach the Central government for a special package for development of industries in the State on the lines of North East Industrial Policy notified by the Central Government vide Ministry of Industries OM No. EA/1/2/96-IPD dt. 24th of Dec 1997.

(3.) The Central Government felt the need for structured intervention strategies to accelerate industrial development of the State and boost investor confidence. Vide Notification dated 14th of June 2002, issued by the Ministry of Commerce & Industry (Department of Industrial Policy & Promotion), Government of India, some new initiatives were taken to provide incentives as well as an enabling environment for industrial development in the State. The policy provided various fiscal incentives to new industrial units as also to those existing units engaged in substantial expansion. As a measure of fiscal incentives, the Government approved conversion of growth center into total tax free zones for a period of ten years from the date of commencement of commercial production. In terms of the new industrial policy approved by the Central Government, all industrial activities like growth center, industrial infrastructure development centers (IID Cs) and other locations like industrial estates, parks export processing zones, commercial estates etc., as notified by the Central Government were held entitled to 100% excise duty exemption for a period of ten years from the date of commencement of commercial production as indicated above. The State Government was also 4 requested to grant sales tax exemption to the units which avail of concessions under the above policy.