DAGA CHEMICALS Vs. STATE

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) THIS petition is directed against the order passed by District Level Screening Committee dated 14. 10. 1998 by which the certificate of completion of application issued to the petitioner's new unit on 25. 9. 98 was cancelled and the application for considering the case of the new unit for sanctioning the benefit under the New Sales Tax Incentive Scheme, 1989 was returned by expressing its inability to grant the same because the unit is established in a rented premises. THIS was stated to have been done on the basis of decision conveyed by the Addl. Director (Industries) vide his communication dated 25. 9. 98.

(3.) BE that as it may, the State Level Screening Committee was not warranted to make a general denial of consideration of the applications for registration of the new industrial unit which has been established on a rented premises on such assumed premise. It may further be noticed that the condition that a new industrial unit in order to be entitled to avail the benefit of incentive it must continue to be in existing and operate for a minimum period prescribed. It is also provided as a consequence that if the production is closed before the minimum period prescribed for that purpose the incentive can be withdrawn. Therefore, there was no premise to start with entertaining this apprehension that an industrial unit established on a rented premises will not be able to avail the benefit for the full period and therefore it must be denied consideration at the threshold, lest the same may have to be withdrawn prematurely. On the other hand, in the eventuality that an industrial unit is not able to run for the minimum prescribed period it may loose the benefit granted to it originally but that contingency arise only in the event of discontinuance of the production during the minimum period prescribed in the Scheme but for that reason the claim of the applicant cannot be pre-empted prematurely at the stage of consideration.