ASSISTANT COMMISSIONER COMMERCIAL TAXES Vs. NAGAURI INDUSTRIES

JUDGEMENT

(1.) NO one appeared on behalf of the respondent despite service. Heard the learned counsel for the petitioner. This revision is against the order passed by the Rajasthan Tax Board in Appeal NO. 553 of 1994 'a. C. T. O. v. Nagauri Industries, Sriganganagar" decided on March 20, 1998. The District Level Screening Committee in its meeting dated April 23, 1993 has sanctioned the issue of eligibility certificate in favour of the M/s. Nagauri Industries to claim the benefit of Sales Tax Incentive Scheme, 1987 in respect of a new industrial units for manufacturing edible oil established by the respondent. Against the order of District Level Screening Committee, the assessing authority preferred an appeal before the Board. That appeal has been rejected by the Board. Aggrieved with the aforesaid order the revenue has filed this revision.

(2.) THE facts giving rise to this case are that in the meeting held on December 14, 1993, respondent M/s. Nagauri Industries was granted eligibility certificate to avail of benefit under the Sales Tax Incentive Scheme only in respect of Central sales tax. THE position of the oil industries under the Incentive Scheme of 1987 has succinctly been noticed by the Supreme Court in two cases namely State of Rajasthan v. Gopal Oil Mills reported in [1999] 115 STC 25 and State of Rajasthan v. Mahaveer Oil Industries reported in [1999] 115 STC 29. By a notification dated May 23, 1987, issued in the exercise of its powers under section 4 (2) of the Rajasthan Sales Tax Act, 1954, the appellant-State of Rajasthan notified a Sales Tax Incentive Scheme for Industries, 1987 (hereinafter referred to as "the incentive scheme") under which it exempted (inter alia) new industrial units from payment of tax on the sale of goods manufactured by them for sale within the State of Rajasthan in the manner and to the extent and for the period as specified in that notification. THE operative period of the scheme under that notification was from March 5, 1987 to March 31, 1992. It was subsequently extended to March 31, 1997. THE incentive scheme was applicable, inter alia, to new industrial units set up in areas mentioned in annexure A to the notification. Annexure B sets out a list of industries which were not eligible for the benefit of the said notification. Oil extraction or manufacture was not listed in appendix B. Hence this industry was eligible for benefits under the scheme of May 23, 1987. THE respondent has claimed the benefit of incentive scheme in respect of oil extraction or manufacture.

(3.) JUDGMENT of High Court to the extent it related to benefit under the State Sales Tax Act was set aside. The judgment of the Supreme Court in respect of Rajasthan Sales Tax Act was re-affirmed in the later judgment : State of Rajasthan v. Mahaveer Oil Industries reported in [1999] 115 STC 29. In the present case it was disclosed in the minutes of the meeting of District Level Screening Committee that the respondent has established a new unit for oil extraction and manufacture on January 2, 1991 when the commercial production started and has applied for grant of incentive scheme on September 30, 1991, after the benefit of scheme under Central Sales Tax Act has been restored. The issue only involved the benefit of the scheme under the Central Sales Tax Act. The respondent as discussed above has commenced commercial production during the discontinuance of the scheme. At the relevant time the benefit of Incentive Scheme of 1987 was discontinued for the oil extraction and manufacture. By notification dated May 7, 1990 which operated from May 7, 1990 to July 26, 1991, the benefit which was extended to those industrial units which commenced commercial production during this intervening period by the Rajasthan High Court and affirmed by Supreme Court, on the ground that withdrawal of the scheme under Central Sales Tax Act for limited period was not supported by any material to be on the ground of any public interest and allowing such discontinuance will result in hostile discrimination towards the units coming into production during the clouded period.