DEVSHREE CEMENT LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) BY this writ petition, the petitioner has prayed the notification dated February 5, 1988 may be quashed and the demand raised by the respondents vide demand notice dated October 1, 1991 may also be quashed. Petitioner has further prayed that the respondents may also be directed to grant eligibility certificate to the petitioner with effect from June 28, 1988 instead of October 1, 1991.

(2.) THE petitioner is a limited company and is registered as medium scale industry. Petitioner has a mini cement plant for manufacturing Portland cement and having annual capacity on maximum utilisation of the plant to the tune of 33,000 tonnes per annum. THE petitioner-unit started commercial production with effect from June 28, 1988. THE exercise of the powers under sub-section (2) of section 4 of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act, 1954") respondent No. 1 issued a scheme vide notification dated May 23, 1987 known as Sales Tax Incentive Scheme for Industries, 1987 (hereinafter referred to as "the Incentive Scheme" ). Under the scheme new units are exempted from payment of tax on the sale of goods manufactured by such units within the State of Rajasthan provided they fulfil the conditions laid down in the scheme. Petitioner-company has applied for exemption of payment of sale tax under the scheme to the District Industries Officer but the District Industries Officer has returned the application to the petitioner on the ground that the petitioner has not started commercial production.

(3.) THE exemption scheme No. F. 4 (35)/fd/gr-IV/87 was notified on May 23, 1987. Clause 7 provides how the newly established unit will obtain the eligibility certificate for exemption of sales tax. It, inter alia, provides that new industrial unit (assessee) will apply for the exemption under the scheme and the screening committee will consider whether the new unit is entitled for the exemption under the scheme. In case it find the assessee/new unit eligible for the exemption under the scheme, it will issue eligibility certificate to the assessee and this exemption will be available for five years. It may be given for a year and thereafter renewed year after year till five years.