AAR BEE INDUSTRIES Vs. STATE AND OTHERS

JUDGEMENT

(1.) In this writ petition, the petitioner inter alia seeks a Writ of Mandamus, directing the respondents to refund a sum of Rs. 2,17,80,832.61/- (Rs. Two Crore, Seventeen Lacs, Eighty Thousand, Eight Hundred Thirty Two and Sixty One Paise only) in view of Government Order No. 168-IND of 2005 dated 30th June, 2005. The petitioner has also prayed for direction to the respondent No. 5 to make supply of inputs (Raw Material) to the petitioner. In order to appreciate the grievance of the petitioner, few facts need mention, which are stated infra.

(2.) The petitioner is a Small Scale Industrial Unit, which is being run in the name and style of M/S AAR BEE INDUSTRIES. The aforesaid unit is duly registered with District Industries Centre, Jammu for manufacture of Menthol, De-menthodized Oil and Peppermint Oil. The provisions of Jammu and Kashmir Value Added Tax Act, 2005 (hereinafter referred to as, "the Act") came into force in the State w.e.f. 01st April, 2005. By the aforesaid Act, the provisions of Jammu and Kashmir General Sales Tax Act, 1962 were repealed. The State, which is otherwise an industrially backward State granted incentives to the Industrial Units to promote the industries in the State of Jammu and Kashmir for its overall economic development and for generation of employment. Keeping the aforesaid object in view, rebate in Value Added Tax (in brevity, "VAT"] was provided to Small Scale Industrial Units, who purchase the inputs through Jammu and Kashmir Small Scale Industries Development Corporation Limited (hereinafter referred to as, Corporation) /J&K Minerals Ltd. /any other Public Sector Corporation of the State. Accordingly, the aforesaid Government Order No.168-IND of 2005 dated 30th June, 2005 was issued.

(3.) In view of the aforesaid Government Order, the petitioner started making local purchases of raw material from local traders through the Corporation after payment of the Value Added Tax, as per the Act to the Corporation at the prescribed rate. Till 15th October, 2008, the petitioner made total purchases worth Rs. 18,09,70,045.72/- after payment of VAT to the tune of Rs. 2,17,80,832.61/- (Rs. two Crore, Seventeen Lacs, Eighty Thousand, Eight Hundred Thirty Two and Sixty One Paisa only). The purchases made by the petitioner have been certified by the Corporation, which is evident from the Output Tax Register of the Corporation, which has been annexed with the writ petition as Annexure-G. The petitioner satisfied all the conditions prescribed in the aforesaid Government Order. The petitioner was paid an amount of Rs. 8,40,423/- vide Cheque No. 068954 dated 08th March, 2008 towards his claim for refund of VAT for the month of December, 2007. The respondent No. 4 vide Communication dated 04th April, 2008 sought clarification from respondent No. 3 for re-imbursernent of the amount of VAT to the petitioner. The respondent Nos. 4 and 5 vide Communication dated 1st August, 2008 addressed to respondent No. 3 clarified the matter and respondent No. 4 in response to the Communication dated 04th April, 2008 advised that SSI Unit is entitled to relief in VAT in terms of the aforesaid Government Order. Accordingly, it was advised to reimburse the amount of VAT to the petitioner, which was withheld. However, the amount was not refunded to the petitioner. In the aforesaid factual background, the petitioner has approached this Court.