STATE Vs. SHREE CEMENT LIMITED

JUDGEMENT

(1.) We have heard the Learned Counsel for the parties at length on the prayer for interim relief and have perused the material placed on record. This order being related only to the prayer for interim relief, we do not propose to dilate much on the factual and legal aspects involved in the matter. Suffice it shall be to take note of, in brief, the relevant background aspects.

(2.) This appeal is directed against the order dated October 11, 2011 (Shree Cement Ltd. v. State of Rajasthan, 2012 49 VST 483 as passed in CWP No. 4790 of 2009 whereby the learned single judge of this Court has allowed the writ petition filed by respondents Nos. 1 and 2 and upheld the claim made by the writ petitioner-company, for grant of increased subsidy at 75 per cent of the additional tax liability, instead of 50 per cent as allowed earlier.

(3.) The matter relates to Rajasthan Investment Promotion Scheme, 2003 ("the Scheme "/" the Scheme of 2003") as introduced on July 28, 2003. Clause 7 of the Scheme provides for capital investment subsidy that has been bifurcated into different components like interest component subsidy and wage component subsidy. Such subsidy was allowable maximum to the extent of 50 per cent of the tax payable and deposited under the Rajasthan Sales Tax Act, 1994, the Central Sales Tax Act, 1956 and the Value Added Tax Act, 2003 (when it came into force in the State of Rajasthan with effect from April 1, 2006). The Scheme of 2003 was amended on December 2, 2005 and sub-clauses (vi) and (vii) were introduced to the said clause 7 providing, inter alia, for additional upfront subsidy to the extent of 45 per cent based on actual tax payable and deposited; and the maximum limit was increased to 75 per cent. The petitioner-company made separate applications for such subsidy in respect of two units one at Ras, Tehsil Jaitaran, District Pali and another at village Kushkhera, Tehsil Bhiwadi, District Alwar on different dates. On July 29, 2006, the State Level Screening Committee ("SLSC") issued entitlement certificate in respect of the petitioner-company's unit at village Ras, Tehsil Jaitaran, District Pali; and the decision included grant of subsidy under the notification dated December 2, 2005. In pursuance of the said decision, the Industries Department issued certificate to the petitioner-company. Then, on June 27, 2007, in the meeting of SLSC, the writ petitioner-company was further found entitled for subsidy in respect of 2nd expansion of Ras unit and Kushkhera unit.