ERGEN PLASTIC INDUSTRIES Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE petitioner is a registered partnership firm, M/s. Ergen Plastic Industries, Jodhpur. Shri F. L. Maheshwari is the major partner along with others and the firm was registered with the Registrar of Firms in 1975. It appears, the partnership firm M/s. Ergen Plastic Industries, Jodhpur, carries on business of manufacturing and selling plastic goods, viz. , polythene bags, films, plastic pipe, plastic cane, monofilaments, extruded sections, etc. It started the manufacture of polythene bags and films in 1967 as a proprietary concern. It was converted into a registered partnership firm in 1975 for carrying on business of manufacturing and selling plastic goods, namely, polythene bags, films, plastic pipe, plastic cane, monofilaments, extruded sections, etc. , and was a licensed registered dealer under the provisions of the Rajasthan Sales Tax Act, 1954. It appears, after the proprietorship concern being converted into a partnership firm, fresh licences were granted to the new partnership firm and new registration No. R. S. T. 512/67 and C. S. T. JUC/4467 were allotted to the new partnership firm. In order to boost industrial production in the State, it is alleged, the State Government has given exemption to pay tax for new products with the help of new machinery under section 5cc of the Rajasthan Sales Tax Act, 1954, and is availed of by issue of form S. T. 17a. THE petitioner applied for the issue of the form S. T. 17a on 22nd March, 1975, but that was rejected. Appeal was taken. THE appellate authority also rejected the same. It is alleged that in refusing this form the ground given is that the present partnership firm is using old machinery which has already been used by the old proprietary concern. Being aggrieved by the said order and further order on further letter in 1976 by which the respondents refused to give form S. T. 17a to the petitioner on the ground that about 80 per cent of the machineries installed are old machineries and the new machinery which has been installed for manufacturing plastic cane has not yet started production, the petitioner moved this Court and obtained the present rule.

(2.) THE question is whether the petitioner is entitled to the exemption under section 5cc of the Rajasthan Sales Tax Act, 1954. Mr. Maheshwari on behalf of the petitioner contended that section 5cc of the Rajasthan Sales Tax Act read with notification under section 5cc of the aforesaid Act makes it clear that the petitioner is entitled to exemption, because it is a new unit and therefore, entitled to the exemption.