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TMI Blog1991 (4) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... growth centres, viz., Padra, and that it had started commercial production from October 29, 1983, granted such a certificate on February 27, 1984, and also specified the amount of sales tax deferment available to the petitioner. It was subsequently amended in October, 1984, so as to read that sales tax deferment available to the petitioner was up to Rs. 25 lacs. After obtaining this certificate, the petitioner applied to the sales tax authorities for granting certificate of sales tax deferment. 2.. The Assistant Sales Tax Commissioner rejected the petitioner s request on the ground that new industries established within the prohibited distance of 24 kms. from the limits of Baroda Municipal Corporation were not entitled to the benefit of sales tax deferment scheme and, therefore, the petitioner was not entitled to get such a certificate. 3.. The case of the petitioner is that inspite of the prohibition with respect to distance, Padra was mentioned as one of the growth centres in annexure II to the resolution dated December 22, 1977 and it had continued to remain as specified growth centre even under resolution dated August 27, 1980. Even the resolution dated March 18, 1982 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts falling in the areas within 24 kms. from the municipal limits of Baroda, the Government, in its Resolution No. MSC-1076-7637(1)-J dated December 22, 1977, had mentioned Padra as one of the Growth Centres. The scheme was applicable to new industrial units in developing areas which included zones mentioned in annexure I and growth centres mentioned in annexure II to the said resolution. So far as Resolution No. MSC-1076-7637(2)-J is concerned, therein also Padra is mentioned as one of the growth centres even though one of the conditions mentioned in the said resolution is that the industrial units should be established in areas beyond 24 kms. from the municipal limits of Ahmedabad and Baroda. The learned counsel also drew our attention to the resolution dated March 18, 1982 and submitted that in that resolution also Padra is mentioned as one of the Growth Centres. He submitted that the sales tax deferment benefit was to be computed on the basis of Table-II contained in the said resolution, depending upon the grade of growth centres as listed in annexure I to that resolution. Annexure I gives details of growth centres and their grade, which are in areas beyond the distance limit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated in towns having a population of more than one lac on the basis of 1971 census, or falling in areas within 24 kms. of the municipal limits of Ahmedabad and Baroda and 10 kms. from the municipal limits of Surat, Rajkot, Bhavnagar and Jamnagar. It was stated in annexure I of the said resolution that the developing areas would consist of zones and growth centres as defined in the said annexure. Zone II consisted of districts of Panchmahals, Bharuch and Surendranagar; Zone II consisted of district of Kutch, Junagadh, Amreli, Bhavnagar, Banaskantha, Sabarkantha and Mehsana and Zone III consisted of backward talukas identified by the Hathi Committee and were not covered by Zones I and II. Annexure II specified the growth centres. It has become necessary to refer to these details as they would determine the nature of assurance given by the Government and have some bearing on the second contention raised by the learned counsel for the petitioner based upon the resolutions dated September 15, 1978 and March 31, 1981. By the second resolution of 1977, the Government provided for exemption from payment of sales tax and interest-free sales tax loan. While providing for exemption from sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable under the sales tax incentives schemes of 1977 and 1980. On true construction of the said resolutions, it will have to be held that only those industrial units which were located outside the prohibited distance were entitled to the benefit of sales tax deferment scheme. We cannot, therefore, accept the contention that the assurance which was held out by the Government under the said schemes was that any one who had set up a new industrial unit at the growth centre at Padra would be entitled to the sales tax incentives/benefits available under those schemes. We are of the opinion that the industrial units set up within the prohibited distance were not eligible under those schemes for any benefit under any of those three resolutions. 7.. We will now consider the second contention raised on behalf of the petitioner. It was submitted by the learned counsel that, in any case, as a result of the resolution passed by the Government on September 15, 1978, it became entitled to the benefit of the sales tax deferment scheme to the extent of 50 per cent and then as a result of the subsequent resolution dated March 31, 1981 it became entitled to the full benefit of the said schemes. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame are not available to the areas falling within 24 kms. of municipal limits of Ahmedabad and Baroda and 10 kms. of Rajkot, Jamnagar, Bhavnagar and Surat. Several representations were received for promoting industrial activities in the really backward areas of Hathi Committee Talukas as well as centrally declared backward districts which are falling under the banned distance of Metropolitan cities and therefore are deprived of the incentives available to other backward areas under the present schemes. It was felt that some areas are really backward and have not been able to derive any benefit from the vicinity of Metropolitan cities so far. Government was therefore, considering a selective relaxation within the banned distance for such really backward areas, so that areas of Hathi Committee talukas or centrally notified districts falling within banned distance of 24 kms. and 10 kms. respectively also get benefit of induced industrial development. 9.. What is pertinent to note is that representations were received for promoting industrial activities in the really backward areas of Hathi Committee Talukas as well as centrally declared backward districts, which were falling under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Government resolution dated December 22, 1977. Padra is not shown to be a backward taluka of Vadodara district. It, therefore, becomes clear that the relaxation which has been made by the Government resolution dated March 31, 1981 is not in respect of those areas falling within the limits of 24 kms. from the municipal limits of Vadodara which are not areas of Hathi Committee backward talukas. Annexure I to the said resolution dated March 31, 1981 mentions 10 backward districts and the backward talukas identified by Hathi Committee. In that annexure Vadodara is not shown as a backward district and Padra taluka of Vadodara district is not shown as a backward taluka. Therefore, the contention raised on behalf of the petitioner with respect to the Government resolution dated March 31, 1981 cannot be accepted. 11.. In the result, this petition is partly allowed. The impugned orders dated March 8, 1985 and April 16, 1985 are quashed and set aside and respondents Nos. 3 and 4 are directed to issue deferment certificate to the petitioner upto an upper limit of Rs. 25 lacs for the period between October 20, 1983 and October 19, 1990. It is clarified that respondents Nos. 3 and 4 sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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