9911796707
TMI Blog1998 (9) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... t under IPR of 1986. Since the respondent-unit was not eligible to get concession in the form of sales tax exemption under IPR 1986 it was not a continuing unit of 1986 policy under Part II of IPR 1989 and further was not a new industry under IPR 1989, as such was not entitled to sales tax exemption under notification dated August 16, 1990. Thus the judgment and order of the High Court in allowing the writ application of the respondent is not sustainable in law - Civil Appeal No. 364 of 1994, 4889 of 1988, 10757, 10758 of 1996, 5630 of 1994, 7377 of 1992, 7280 of 1995, 6429 of 1993, 7379 of 1992 - - - Dated:- 18-9-1998 - BHARUCHA S.P. AND KHARE V.N. JJ. Dushyant A. Dave, Senior Advocate (Ms. Bina Gupta, Rakhi Ray and Ramesh Sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the provisions of the earlier Policy Resolutions. In such resolutions, certain categories of industries were kept outside the purview of incentives/concessions provided in the IPR. Only those industries were entitled to incentives/concessions in the form of sales tax exemption which were set up within the framework of the provisions of IPR. The industries which did not come under the purview of the aforesaid IPR were not entitled to incentives/concessions in the form of sales tax exemption during the operative period of one IPR and thereby could not avail themselves of the benefits under subsequent IPR. 3.. In the present case, the respondent M/s. Vijay Laxmi Oil Industries made the first investment on fixed capital (land, building, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption under IPR 1986, vide item B, definition (f) of IPR 1986 and as such was not entitled to have any incentives/ concessions under IPR 1989. Elaborating his arguments, learned counsel further argued that the continuing small-scale industrial units of 1986 Policy which were otherwise eligible for sales tax exemption on finished product for a period of 5 years, were only allowed to avail of the concessions for additional 2 years, i.e., in all 7 years under 1989 policy vide clause 7.2.2 of IPR 1989 and the view taken by the High Court in allowing the writ applications is erroneous. 6.. Before we advert to the arguments of learned counsel for the appellant, it is necessary to examine the reasoning given by the High Court in allowing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et up under 1989 policy, Part II deals with concessions/incentives to continuing industries of 1986 policy. Clause 7.2.3 falling under Part II of IPR 1989 provides that small-scale continuing units of 1986 policy will be allowed exemption of sales tax on finished products for an additional period of two years over and above five years allowed under 1986 policy, i.e., in all seven years. Clause 7.2.3 of 1989 policy runs as under: 7.2.3. Exemption/deferment of sales tax on finished products.- Small-scale continuing units of 1986 policy will be allowed exemption of sales tax on finished products for an additional period of 2 years over and above 5 years allowed in 1986 policy, i.e., in all 7 years. Medium and large scale continuing unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt I, clause 7.1.1. of IPR 1989 only those new industries which were set up under IPR 1989 were entitled to incentives/ concessions. This implies that under Part II, only eligible continuing industries of 1986 policy were entitled to sales tax exemption for further period of two years. The respondent unit being ineligible to receive sales tax exemptions under 1986 policy was precluded to entitlement of sales tax exemption under IPR 1989. 10.. Learned counsel for the respondent then urged that in view of the notification dated August 16, 1990 amending the exemption notification dated April 23, 1976, the respondent s unit was entitled to have exemption from sales tax for a period of seven years from the date of commercial production and fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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