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TMI Blog2001 (2) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... h the units did not exercise their option within time allowed under the 1987 scheme, but they applied to avail the benefit of Incentive Scheme 1987 on January 28, 1988. Those applications were not entertained by the District Level Screening Committee as the exercise of option was delayed and 1987 scheme did not contain any provision empowering the District Level Screening Committee to entertain the application beyond limitation. Thereafter with effect from July 6, 1989, Rajasthan Sales Tax New Incentive Scheme for Industries, 1989 was introduced. Clause 1 which describes operative field of the scheme envisages that 1989 Scheme shall be deemed to have come into operation with effect from March 5, 1987 and shall remain in force until March 12, 1997 which has been extended from time to time. 3.. In the first instance, the District Level Screening Committee by its order dated May 24, 1990 granted eligibility certificate in favour of both the respondents under the New Incentive Scheme, 1989 by condoning the delay. However, by order dated June 10, 1992, the said eligibility certificate was cancelled by the District Level Screening Committee without notice to the concerned dealers. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme solely on the ground of limitation. 8.. On the first flush the contention of Mr. Bhansali appears to be plausible but fails to sustain itself, on a close look at the scheme in its entirety. It would be appropriate if the background of the relevant concessional scheme for the present purpose is noticed. 9.. Before commencement of the Incentive Scheme, 1987 and Sales Tax Deferment Scheme, 1987, the State of Rajasthan had vehicled interest-free sales tax loan Scheme under 1985 dispensation. The new industrial units covered under 1985 dispensation prior to commencement of 1987 Scheme, incentive as well as deferment, were entitled for concession in the form of interest-free sales tax loan. Under the Incentive Scheme, 1987 new industrial units which commence commercial production during the operative period of said scheme became entitled to avail the benefit of exemption from payment of tax on the sales made in the course of inter-State trade or commerce of the goods manufactured by them within the State. This scheme was introduced vide notification dated May 23, 1987 and originally was to remain in force up to March 31, 1992. This scheme was applicable to new industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. However, from the operative filed of 1989 scheme, the units which were covered under 1985 dispensation which were entitled for availing the benefit of interest-free sales tax loan and were allowed to opt for benefit under 1987 scheme, were deliberately kept out of the operative field of the 1989 scheme and benefits were confined either to avail interest-free sales tax loan under 1985 dispensation or incentive under Scheme of 1987. The relevant provisions of the Scheme of 1989 which invite attention are firstly clause 3 which reads as under: "3. Applicability of the New Incentive Scheme.-The New Incentive Scheme will be applicable- (1) to new industrial units; (2) to industrial units going in for expansion or diversification; and (3) to sick units. " Each of these units were defined in the definition clause (2). The new industrial unit was defined as under: " 'New industrial unit' means an industrial unit which commences production during the operative period of the New Incentive Scheme, but will not include: (i) an industrial unit established by transferring or shifting or dismantling an existing industry; and (ii) an industrial unit established on the site of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cate under the New Incentive Scheme for remaining eligible amount of the old scheme and for the remaining period thereunder, after obtaining the prior approval of the Commissioner." 13.. Under clause (c) it seems that an industrial unit whose application under the Old Incentive Scheme has been rejected on the ground of limitation only, has been permitted to opt for new Incentive Scheme by making a simple application on a plain paper to this effect before appropriate screening committee so also the industrial unit whose application for grant of eligibility certificate is pending under the scheme was enabled to opt for New Incentive Scheme for Industries, 1989. Clause (d) made a further provision that industrial unit which has already been granted sanction by any screening committee under the old incentive scheme may also opt for the shifting to new incentive scheme by making a simple application for the purpose of availing concession in respect of remaining eligible amount of Old Scheme and for the remaining period thereunder. If clause (c) is read in isolation an impression is created which speaks about the industrial undertaking, unqualified with words "other than the new indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f time only for the purpose of building up of their capital. 15.. We are, therefore, of the opinion that the Tribunal was right in holding that the benefit of 1989 Scheme cannot be extended to new industrial unit in question which has started their commercial production prior to commencement of 1987 Scheme but after April 1, 1985 and if at all they could get the benefit they could get only under 1987 Scheme. 16.. The question which arise is whether the District Level Screening Committee could treat the application under 1987 Scheme made after rejection of earlier application for exercising their option to be moved under 1987 Scheme within time prescribed. 17.. The answer in our opinion ought to be in the negative. Firstly the application for exercising option was filed after expiry of period prescribed under 1987 Scheme. The application was not maintainable under 1989 Scheme and transactions under 1987 Scheme having been closed, no power was given to District Level Screening Committee to reopen the case and to hear the application on merits by deemed condonation of delay apart from the fact that District Level Screening Committee had no jurisdiction to review its earlier or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondents is discernible from the same. In those two cases, the dealer who had started commercial production of its new industrial unit after April 1, 1985 but before March 5, 1987 had in fact made an application within limitation in the first instance to avail the benefit of deferment scheme. However, since the petitioner did not qualify to avail the Deferment Scheme, 1987 because its eligible capital investment fell short of the required minimum, it made an application for switching over to the incentive scheme of 1987 which it could also avail. Thus though application for switching over from deferment scheme to the Incentive Scheme was made beyond period prescribed for exercise of option the basic application to avail benefits under 1987 scheme has in fact been made within time prescribed. It is in the aforesaid circumstances that the court held that the application for grant of eligibility certificate ought to have been decided on merits. It is obvious that the facts of the present case are distinguishable inasmuch as in the aforesaid two decisions the application for exercise of option under 1987 scheme instead of availing advantage of 1985 dispensation were made by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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