9911796707
TMI Blog1996 (5) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... d in resolution No. 13730 dated September 1, 1986. The relevant part of the resolution regarding exemption from payment of sales tax on purchase of raw materials runs as follows: "9.1. Sales tax relief on purchase of raw materials (whether processed or unprocessed)-Large, medium, small and tiny industrial units going into production on or after 1st September, 1980 will have the option either to avail of total exemption from payment of sales tax on purchase of raw materials (whether processed or unprocessed) or to get set-off of the amount paid as Bihar sales tax on purchase of raw materials against the amount of Bihar sales tax payable on the sales of finished products. This facility will be available to the industrial units for a period of 5(five) years on such raw materials in respect of which facility of exemption or set-off is available under existing Government's orders." In order to give statutory effect to the said policy decision the State Government issued notifications vide S.O. 791 and S.O. 793 both dated September 10, 1987 under section 7(3)(b) of the Bihar Finance Act, 1981. 3.. It would be appropriate to quote the relevant portions of the two notifications as he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification shall remain in force till the 31st August, 1991. 4...................." 4.. It would appear that while S.O. 791 contemplates and provides for giving benefit of tax exemption to newly set up industrial units going into production on or after September 1, 1986, S.O. 793 contemplates and provides for tax exemption to such old existing units which have been approved and registered to undertake expansion and/or diversification as per paragraph 15 of the Resolution No. 13730 dated September 1, 1986. In either case the benefit is available for a period of five years from the date the unit goes into production in the case of new units, and in the case of old units, from the date the unit starts production as a result of diversification and/or expansion. It may be noted here that while in terms of S.O. 791 exemption can be claimed with respect to industrial units going into production on or after September 1, 1986, under S.O. 793 the benefit is available only to those industrial units which have adopted the expansion/diversification after necessary approval and registration by the Industries Department on or after September 1, 1986. 5. From paragraph 9 of the writ p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner under section 32 of the Finance Act, and/or cancel the same. According to the respondents, the petitioner has already availed the benefits of the tax-free purchase of the raw materials under S.O. 793 for full period of five years from February 15, 1988 to February 14, 1993. And as admittedly the petitioner is an old industrial unit had gone into production in 1978 itself it was not entitled to exemption under S.O. 791 which provides for such benefits to only new industrial units going in production on or after September 1, 1986. According to the respondents further, after Industries Department permitted expansion/diversification the petitioner obtained a new registration number, namely, R.N.(S)-1207(R). The unit, no doubt, went into production on November 21, 1990, i.e., after cut-off date, i.e., September 1, 1986, but, as a matter of fact, it is the expanded unit of the old existing unit which had already gone into production prior to the said cut off date and, therefore, cannot be called a new industrial unit. The stand of the petitioner in this regard is that in terms of rule 14 of the Bihar Sales Tax Supplementary (Deferment of Tax) Rules, 1990, effective from January ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is not understandable to me as to how having already been allowed the benefits which it was entitled to being an old unit with respect to its expanded portion under S.O. 793 dated September 10, 1987, it could claim the same benefit, i.e., a second time exemption under S.O. 793 itself. On this reasoning and in view of the admitted case of the parties that the exemption was/is claimed with respect to the expanded unit of an old existing unit, I do not think it is necessary to go into any other question, such as, whether having availed the benefits of tax exemption with respect to expanded unit under S.O. 793 it was entitled to any such exemption with respect to a new unit under S.O. 791, as contended by the respondents, or whether mention of the wrong statutory order (S.O. 791) in the exemption certificate in question and registration of the unit as a new unit under rule 14 of the Deferment Rules, would have any material bearing, as contended by the petitioner. The argument that the respondents could not review the previous order granting exemption certificate without sanction of the Commissioner is also wholly irrelevant. 10.. As indicated at the very outset, the State Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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