2015 (12) TMI 639 - HC - VAT and Sales Tax

Benefit of tax under the Sales Tax Incentive Scheme for Industries, 1987 (Scheme) - Held that - The impugned judgment dated January 31, 2005 passed by the Board is on the face of it contrary to the judgment of this court in the case of Om Shiv Shakthi Cement Private Ltd. 1988 (9) TMI 326 - RAJASTHAN HIGH COURT and is therefore liable to be set aside. It is so directed. It is further directed that the eligibility certificate issued to respondent-assessee under the Scheme of 1987 would be effective starting the date of application, i.e., April 24, 1994. - Decided in favour of Appellant.

Summary

Issues: Challenge to order of Rajasthan Tax Board regarding eligibility certificate under Sales Tax Incentive Scheme for Industries, 1987.

The judgment addresses the challenge made in a revision petition against the order of the Rajasthan Tax Board regarding the availability of an eligibility certificate under the Sales Tax Incentive Scheme for Industries, 1987. The main contention was whether the eligibility certificate should be effective from the date of application or the date of issue. The petitioner argued that the Board's decision was contrary to a previous judgment by the Division Bench of the court. The court examined the arguments presented and found that the Board's decision was indeed contrary to the previous judgment. Consequently, the court set aside the Board's order and directed that the eligibility certificate issued to the respondent should be effective from the date of application, i.e., April 24, 1994. The revision petition was allowed accordingly.

In conclusion, the judgment clarifies the effective date of an eligibility certificate under the Sales Tax Incentive Scheme for Industries, 1987, based on the date of application rather than the date of issue, in line with previous court precedent.