COMMERCIAL TAXES OFFICER Vs. GANPATI MARBLES AND RAJSAMAND

JUDGEMENT

(1.) HEARD learned Counsel for the parties.

(2.) THE non -petitioner -Dealer sought exemption from payment of tax under the Rajasthan Sales Tax Incentive Scheme, 1987 (for short 'the Scheme of 1987) on the ground that the non - petitioner -Dealer established new industrial unit as defined in Clause 2 of the said scheme and, therefore, is entitled to benefit of tax exemption. The District Level committee vide its order dated 26.3.1997 denied the said benefit on the ground that the non -petitioner -Dealer has established industry by purchasing existing industry and it is located on the same land over which there was already an industrial unit in existence and was manufacturing the similar goods which the non -petitioner is manufacturing. The non -petitioner preferred appeal against the order of the District Level Committee before the Rajasthan Tax Board, Ajmer. The Rajasthan Tax Board, Ajmer held that the non - petitioner unit is entitled to get the benefit under the Scheme of 1987. Hence this revision petition by the revenue against the order of the Rajasthan Tax Board, Ajmer dated 31.3.1998.

(3.) THE learned Counsel for the non -petitioners vehemently submitted that the industrial unit of Shrinath Marbles and Minerals closed down and its registration was surrendered to the Industries Department of the State. The non -petitioner purchased the land of M/s Shrinath Marbles and Minerals and established entirely a new industrial unit. The non -petitioner is manufacturing the marbles tiles and is not engaged in the trade of marbles cutting which was the job of the Shrinath Marbles and Minerals. Not only this, in the statement which was recorded at the back of the non -petitioner by the department itself, it has come on record that the total investment of the erstwhile unit was Rs. 1,98,657/ - and that investment was for purchasing the local machinery for cutting marbles blocks of 8 x 4 x 4. By this machine, the industry was cutting one marble block in 15 days. It has its own limitation in cutting the marble of about 8 ft. only. The industrial unit of Shrinath Marbles and Minerals was closed and thereafter, the non -petitioner purchased the said land as well as the machinery as it could not have been sold separately. According to the learned Counsel for the non -petitioner, in the statements of two witnesses which were recorded by the C.T.O., the proprietor of Shrinath Marbles and Minerals clearly stated that the his unit even had no electric connection after 5.12.1982 and, therefore, it cannot be said that there was any industrial unit on the site when the non -petitioner purchased the land and machinery of the said unit in the year 1994. It is also submitted that industrial unit means the industrial unit in fact and not a piece of land with junk machines or out -dated machines and having no production. Contrary to it, the Tax Board took note of the fact that the land was allotted to the non -petitioner unit by the District Collector and the total investment of Shrinath Marbles and Minerals was of about Rs. two lacs or some thing more, the non -petitioner's unit invested Rs. 47,10,000/ -at that time and at the time of consideration of his application for grant of benefit under the Scheme of 1987, the non -petitioner's investment was of Rs. 65.66 lacks. It is also submitted that the order of the District Level Committee (Annx.l) is in fact not a reasoned order and the reasons which are sought to be supplied by the revenue by filing the copy of the minutes of the State Level Committee, also clearly reveal that before the State Level committee took any decision of rejecting the non -petitioner's claim, they decided to take opinion of Directorate of Industries in the meeting dated 3.8.1986 but it appears from the minutes that said opinion was not considered by the State Level Committee and the District Level Committee and without application of mind, the District Level Committee rejected the non -petitioner's claim which was rightly set aside by the Tax Board.