BINANI CEMENT LIMITED Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) By this revision petition under Section 84 (1) of the Rajasthan Value Added Tax Act, 2003 (hereinafter 'the Vat Act') read with Section 86 of the Rajasthan Sales Tax Act, 1994 (hereinafter 'the 1994 Act') a challenge has been laid to the order dated 24-10-2011 passed by the Rajasthan Tax Board, Ajmer (hereinafter 'the Board') dismissing the petitioner company's application for condonation of delay filed along with an appeal filed by the petitioner on or about 16-9-2011 under Clause 6 of the Rajasthan Sales Tax New Incentive Scheme, 1989 against an order dated 21-10-2011 passed by the State Level Screening Committee. Consequently the appeal was not entertained as hit by limitation.

(2.) The facts of the case are that the State Government notified on or about 6-7-1989 the Rajasthan Sales Tax New Incentive Scheme, 1989 (hereinafter 'the 1989 Scheme'). The petitioner company is stated to have established a new industrial unit in state of Rajasthan covered under the 1989 Scheme for manufacturing cement and clinker by investing Rs.632.67 crores as fixed capital investment. The unit commenced commercial production on 25-5-1997. The 1989 Scheme provided for exemption from payment of tax in varying percentages dependent on the extent of eligible fixed capital investment (hereinafter 'the EFCI') certified by the State Level Screening Committee (hereinafter 'the SLSC'). The EFCI was to be calculated as provided for in the 1989 Scheme. The petitioner company is stated to have made an application to the SLSC on or about 29-10-1997 under the 1989 Scheme claiming for a grant of eligibility certificate for EFCI of Rs.532.52 crores. In the first instance the SLSC vide order dated 15-1-1998 accepted EFCI only to an extent of Rs.55.35 crores, further holding that the petitioner company was entitled to an exemption of 25% of its tax liability for a period of 7 years.

(3.) Dissatisfied with the order dated 15-1-1998, passed by the SLSC, the petitioner company filed a review petition before the SLSC in terms of clause 5A of the 1989 Scheme against the decision dated 15-1-1998 claiming EFCI of Rs.396.72 crores and percentage exemption on tax @ 75% based on a circular dated 12-10-1995 relevant to the 1989 Scheme as issued by the Director, Industries Department, Government of Rajasthan.