ABU SYNTHETICS PVT LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE petitioner is a company which was doing the business of manufacture and sale of P. P. Sutli (Dori) since 1987. It is the case of the petitioner that a change in the management was effected in 1993 and with the change, the present management also changed the products of P. P. Sutli to Canvas Shoes and Chappals which according to the petitioner was done with the permission from DIC, RFC and RIICO. It is the further case of the petitioner that it was granted benefit of sales tax exemption under Incentive Scheme. 1987 vide notification dated 23. 5. 87 (Annex. 3 ). THE petitioner was also granted the Eligibility Certificate (EC) and during the period from 1. 4. 88 to 31. 3. 1994, the previous management availed the exemption of Rs. 1,44,927/ -.

(2.) PROCEEDINGS were initiated against the petitioner under Cl. 4 (e) r/w cl. 9 (b) of the Scheme on the ground that it did not maintain the average production for next five years as required under the Scheme and, therefore, the exemption availed under the scheme on the sale of P. P. Sutli was lost and the company was liable to pay the entire amount of exemption with interest.

(3.) IN view of the above discussion, I do not find any substance or merits in this petition and accordingly, this petition fails and is dismissed.