AMBUJA CEMENTS LTD. Vs. THE STATE OF RAJASTHAN

JUDGEMENT

(1.) WE have heard learned counsel appearing for the petitioners and learned counsel appearing for the respondents -State of Rajasthan.

(2.) THE petitioner No. 1 is a Public Limited Company registered under the Indian Companies Act, 1956 with its registered office at Ambujanagar, Taluka Kodinar, District Ghirsomnath, Gujarat. The petitioner No. 2 is shareholder and Vice -President of the Company.

(3.) BRIEF facts giving rise to these writ petitions are that in the year 1996, the predecessor of the petitioner -Company, namely, DLF Cement established a new cement manufacturing unit at Rabriyabas at a total cost of Rs. 400 crores and commenced production on 10.9.1996. A Rajasthan Sales Tax New Incentive Scheme for Industries, 1989 (for short, the Incentive Scheme of 1989") was issued by the State Government vide Notification dated 6.7.1989, providing for grant of partial exemption of Rajasthan Sales Tax (RST) and also Central Sales Tax (CST) to the new industrial undertakings, subject to fulfilment of stipulated conditions. Under the Incentive Scheme of 1989, before or after the amendment dated 10.12.1996, the benefit available to a "Large Scale Cement Unit" was and continued to be 25% of the sales tax liability. The petitioner -Company applied, on which, the Eligibility Certificate was issued to it for grant of incentive to the extent of 25% for 11 years, as it had commenced commercial production before the amendment dated 10.12.1996. The petitioner -Company availed the incentive of 25% of the sales tax liability from 27.3.1997 to 21.2.2002.