9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1991 (7) TMI 350 - HC - VAT and Sales Tax
Issues:
1. Denial of benefit under Sales Tax Incentive Scheme for Industries, 1987 due to bar of limitation. Analysis: The petitioner established a new unit for manufacturing marble tiles and slabs, which started production in July 1986. The petitioner applied for the Sales Tax Incentive Scheme for Industries, 1987 in July 1987, but the application was returned in October 1987 due to defects. Subsequently, the petitioner applied under the Sales Tax New Incentive Scheme, 1989 in December 1989. The District Level Committee informed the petitioner that the unit fell under the 1985 Dispensation Scheme, making it ineligible for benefits under the 1989 Scheme. The petitioner agreed to consider the 1987 Scheme but was later informed that the application should have been filed by November 1987, not in December 1989. The department argued that the application was late by two years and was rightly rejected as there was no provision for late applications in the 1987 scheme. The court considered whether to condone the delay in filing the application. It noted that the petitioner initially filed the application within the limitation period, which was returned due to defects. The court emphasized that incentive schemes are meant to support newly established industries, and strict construction could defeat their purpose. Referring to legal precedents, the court highlighted the need to interpret procedural requirements liberally to encourage industrial activity. The court concluded that the delay in filing the application should be condoned, directing the authorities to consider the petitioner's application on merit within three months. In conclusion, the writ petition was allowed, and the court directed the authorities to consider the petitioner's application under the Sales Tax Incentive Scheme for Industries, 1987, despite the delay in filing, emphasizing the importance of supporting newly established industries and interpreting procedural requirements liberally to encourage industrial activity.
|
