VIRINDER SINGH Vs. STATE OF J&K

JUDGEMENT

(1.) PETITIONERS are manufacturers of goods in their separate factories at Industrial Estates Jammu and they are operating small scale manufacturing units. Respondent State by virtue of powers vested under sec. 5 of J&K General Sales Tax Act, 1962 issued notification SRO 671 on December 18,1979 exempting from payment of tax on finished goods manufactured at units of the dealers operating small scale manufacturing units in the state of J&K. and said notification provided certain restrictions and conditions. According to condition No. VIII it was provided that no unit should be entitled to exemption for a period of ten years from the date of manufactuing of goods, inclusive of the period in respect of which exemption was admissible before first of April, 1977 under notification SRO 468 dated 1 -8 -1977 or any other notification in that behalf and according to clause VI (C) the units which had collected any amount of tax on sale of goods and entitled to exemption under abovesaid notification should deposit the said amount in the Treasury.

(2.) PETITIONERS case is that by virtue of SRO 267 dated 15 -5 -1978 respondent State in exercise of powers under section 5 of the Sales Tax Act had exempted from payment of Sales Tax to the dealers operating small scale manufacturing units in the state which were registered with the Department of Industries and Commerce and the said exemption was available for a period of ten years commencing from August 5, 1968. Another notification SRO 468 dated 1 -8 -1977 which also had directed for such like exemption in respect of turn over of finished goods in the said units was promulgated having effect from 5 -7 -1968 and to continue till March 31,1977. They have stated in the petition that the aim and object of the respondent state was to give an impetus and encouragement to small scale industries and not to make any distinction between small scale industries and all had to be treated equally regarding benefits irrespective of the size and year of establishment. They, in ignorance of their rights, after collecting sales tax from the consumers deposited the same before the respondent State.

(3.) PETITIONERS further case is that by the issuance of proclaimation SRO 671 a great injustice and discrimination has been done to them and they have challenged the same on the following grounds : -