COMMERCIAL TAXES OFFICER CHITTORGARH Vs. ADITYA CEMENT

JUDGEMENT

(1.) THIS revision is directed against the judgment dated May 21, 1998 passed by the Rajasthan Tax Board, Ajmer, whereby the respondent-assessee was held entitled to enjoy the benefit of deferment of payment of tax under the Rajasthan Sales Tax New Deferment Scheme, 1989 (for short "the Scheme of 1989") up to the limit of 90 per cent of its tax liability as a new very prestigious unit instead of 50 per cent of its tax liability as sanctioned by the State Level Screening Committee.

(2.) THE facts necessary for the purposes of this revision petition briefly stated are : that the respondent-assessee established a new industrial unit for the manufacture of cement at Shambhupura in District Chittorgarh. In this unit, the fixed capital investment is over Rs. 100 crores. It has been established in a Panchayat Samiti area, which is outside tribal sub-plan area. It commenced its commercial production on March 28, 1995. THErefore, it falls in the category of "new very prestigious unit" as defined in paragraph (ii) of clause 2 (i) of the Scheme of 1989.

(3.) IT is contended by Mr. S. M. Mehta, the learned Advocate-General appearing on behalf of the petitioner, that as per the Scheme of 1989, all large scale industrial units engaged in manufacturing of cement were ineligible for any benefit under the Scheme of 1989 in view of item No. 10 of the annexure B appended to the Scheme of 1989 containing the list of industries not eligible for sales tax deferment under the New Deferment Scheme. By S. O. No. 354/f-4 (8) FD/gr. IV/91-121 dated March 6, 1991, second proviso was inserted to clause 2 (j) of the Scheme of 1989; which remained in force until the date of commencement of commercial production by the respondent-assessee. IT was on March 6, 1991, second provisos to clause 2 (j) and clause 4 were inserted but no amendment was brought in annexure C, providing quantum of benefits enjoyable by the eligible industries under the scheme according to different classifications and subject to conditions made thereunder. No amendment was made in annexure B the list of ineligible industries for sales tax deferment under the New Deferment Scheme until December 13, 1996. Therefore, the extent of relaxation granted and the benefits extended in the case of large scale cement industries of all sorts must be confined to the benefits extended by the two provisos [second proviso to clause 2 (j) and second proviso to clause 4 of the Scheme of 1989] which were introduced simultaneously.