LAXMI INDUSTRIES Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE petition raises a very short issue. Undisputed facts which have given rise to this petition are that the petitioner set up an industrial undertaking in the industrial backward area of Sumerpur; firstly as stone cutting and polishing industry and thereafter for manufacture and sale of edible oil and oil-cakes and thereafter the petitioner further carried out expansion by diversifying its activities to pulses and dals, etc. In respect of stone cutting and polishing unit the petitioner was granted eligibility certificate under the Rajasthan Sale Tax Incentive Scheme, 1987 on December 1, 1987. In respect of edible oil industry also eligibility certificate was issued on December 1, 1987, Eligibility certificate in respect of diversified project was granted on April 5, 1989. During the subsistence of the aforesaid eligibility certificate, the respondent No. 3 who is the assessing authority for the petitioner, issued notice annexure 4 calling upon the petitioner to show cause why the eligibility certificate issued in its favour be not cancelled and turnover be subjected to tax. This notice is annexure 4. A subsequent notice annexure 5 was also issued. THE petitioner submitted reply to these notices also. THE petitioner challenged the jurisdiction to issue notices annexures 4 and 5.

(2.) A reply has been filed on behalf of the respondents. The stand taken by the respondent No. 3 is that in his opinion the petitioner is not entitled to get the eligibility certificate for availing the facility of exemption from payment of tax under the Rajasthan Sales Tax Incentive Scheme, 1987 and the same has wrongly been sanctioned by the District Level Screening Committee, and the eligibility certificate has wrongly been issued by the Commercial Taxes Officer, Pali. Consequently, the Commercial Taxes Officer, Pali, has no other alternative except to issue show cause notices calling upon the petitioner to show cause why the eligibility certificate dated December 1, 1987 may not be cancelled and tax imposed on the sales of polished stones over which the petitioner has claimed tax exemption under the said Sales Tax Incentive Scheme after December 1, 1987.