2009 (9) TMI 902 - HC - VAT and Sales Tax

Grant of exemption under the Sales Tax Exemption Scheme, 1998 in the category of new industrial unit Held that - In full agreement with the orders passed by the District Level Screening Committee and the learned Tax Board that the petitioner-firm is not entitled for tax incentive under the category of expansion as per the Scheme of 1998. Further, upon perusal of the order passed by the learned Tax Board, it is not established that any subsequent application was filed under the category of new industrial unit under which now the petitioner-firm is claiming for benefits of tax incentive under the Scheme of 1998. Appeal dismissed.

Summary

Issues:
1. Challenge to the order of the Tax Board dated October 4, 2002.
2. Direction sought for consideration of the petitioner's case for exemption under the Sales Tax Exemption Scheme, 1998 in the category of new industrial unit.
3. Discrepancy in the application filed by the petitioner-firm under the Rajasthan Sales Tax/Central Sales Tax Exemption Scheme, 1998.
4. Allegation of error by the District Level Screening Committee and the Tax Board in rejecting the petitioner's application for tax incentive.
5. Interpretation of the scheme's provisions regarding tax incentives for new industrial units versus expansion units.
6. Evaluation of subsequent application filed by the petitioner-firm under the correct category.

Analysis:
The revision petition challenges the order of the Tax Board dated October 4, 2002, seeking direction for the consideration of the petitioner's case under the Sales Tax Exemption Scheme, 1998 in the category of a new industrial unit. The petitioner-firm claimed tax incentives under the scheme but inadvertently filed an application in the expansion category instead of the new industrial unit category. The petitioner argued that despite the mistake, they should be considered for tax incentives under the correct category. The District Level Screening Committee rejected the claim based on the expansion category application, stating the petitioner did not meet the expansion requirements. The Tax Board observed that the petitioner's subsequent application for a new industrial unit did not establish their eligibility, as the project report indicated expansion-related investments.

The court analyzed both orders and concluded that applications must be decided based on the category applied for. The petitioner's mistake in filing the wrong application did not entitle them to benefits under the new industrial unit category. The court found no error in the decisions of the District Level Screening Committee and the Tax Board. The petitioner was advised to pursue any subsequent application under the correct category but found no grounds for interference in the current orders. Consequently, the revision petition was dismissed, affirming the rejection of the petitioner's claim for tax incentives under the expansion category of the 1998 Scheme.