9911796707
TMI Blog1998 (4) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... industry as small-scale industrial unit. By the said notification option was given to the registered medium scale industries falling within the enhanced limit of investment to register themselves as small-scale industrial units or to continue as medium scale unit. In view of the said notification petitioner-company opted for registering itself as a small-scale industry with effect from September 28, 1991. The petitioner-company as a medium scale industry was admitted into the benefit of Industrial Policy Resolution, 1989 (in short, "I.P.R. 1989") and was given exemption from liability to pay sales tax for a period of five years from April 1, 1990. The State Level Empowered Committee constituted under the I.P.R., 1989 in its 5th meeting held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no provision in I.P.R., 1989 for giving sales tax incentives to a medium scale industrial unit downgraded to a small-scale industrial unit. The writ petitioner has filed the present writ application challenging the aforesaid decision of the State Government as communicated by the Deputy Secretary being annexure 3 to the writ application. 2.. There is no dispute about the relevant basic facts in this case. It is admitted that the petitioner-company was/is entitled to the incentives given in I.P.R., 1989 as a continuing unit of 1986 Policy. Only question to be determined is whether an industry downgraded from medium scale to small-scale was entitled to the sales tax benefit of I.P.R. 1989 as a small-scale unit or not. 3.. Since 1989 the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .P.R., 1989. Under entry No. 30-FFFF sales tax exemption was granted on sale of finished products of small-scale industrial units set up between August 1, 1980 and April 1, 1986 and starting commercial production on or after April 1, 1986. Such exemption was allowed for a period of 7 years from the effective date. 4.. By S.R.O. No. 790/90 dated August 16, 1990, the State Government granted exemption under section 7 of the Orissa Sales Tax Act to various classes of medium and large scale industrial units. Under item No. 3 of the Schedule continuing medium and large industrial units set up on or after August 1, 1980 where fixed capital investment commenced on or after August 1, 1990 and prior to April 1, 1986 and the units had gone into comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince it was registered as a small-scale unit. We do not find any justification or any logic in the contention that there should be a separate provision for a downgraded industry. 6.. Registration of an industrial unit as small-scale unit has the purpose of providing such concession and incentives as have been made available from time to time. It also appears that investment limit for such a small-scale industry was enhanced, to bring in more industries within that category. Central Government wanted all those industries to get the incentives, concessions, exemptions or priorities available to them. There is no valid reason for denying the benefit of exemption granted in favour of small-scale industries. The decision of the State Level Empo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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