9911796707
TMI Blog2006 (3) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... inal eligibility certificate dated January 17, 2000. The facts which have given rise to filing of this writ petition are that the petitioner undertook expansion of his industrial unit with effect from October 4, 1998. He made an application for deferment of sales tax in terms of G.O. Ms. No. 108, dated May 20, 1996 in September, 1999. The Industries Department issued eligibility certificate to the petitioner on January 17, 2000 quantifying the deferment of sales tax benefit of Rs. 3,02,65,370 to be availed for a period of 14 years from 1998-99 to 20122013 for the expansion of unit with base production turnover value of Rs. 42,25,897 (1,20,000 units of cylinders). Since the application for grant of deferment was pending, the petitioner-ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, Government introduced a scheme of State Incentives for setting-up of new industries in the State, under 'TARGET 2000'. 4.. Several industrial units have represented that due to delay in issue of final eligibility certificate they have already paid sales tax during the intervening period between the date of expiry of temporary eligibility certificate and date of final sanction of sales tax eligibility on demand from Commercial Taxes Department and have requested that the amount so paid may be adjusted against future dues, after expiry of the final eligibility certificate in case it is not possible to refund the sales tax already paid. 5.. The proposal was placed before the SIPB meeting held on January 18, 1997 and the Board approved t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificates were issued and it contemplates adjustment of taxes paid in the intervening period between the date of expiry of temporary eligibility certificate and final eligibility certificate, and as such G.O. Ms. No. 18 would apply only to new units and not to existing units. This interpretation obviously cannot be accepted because the benefits that are sought to be drawn by the petitioner are in terms of G.O. Ms. No. 108, dated May 20, 1996. The expanded unit in terms of this G.O. is to be treated like a new unit. Paragraph 7 of this G.O. deals with expansion projects and it lays down: "Existing industrial units, in eligible areas, setting up expansion project in products other than those listed in annexure, involving enhancement of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificates are given in case of the units which expand, but only permanent eligibility certificates are issued by the department, therefore the G.O. Ms. No. 18 would not apply as it applies to the period between the date of expiry of temporary eligibility certificate and final eligibility certificate of deferment for sales tax deferment. That is true, in case of the units which expand their activity, no temporary eligibility certificate is required to be given and only a final eligibility certificate is given, but there is no difficulty in coming to the conclusion that in case of units which expand their activity, the time gap can be taken as a period for which the unit had paid the tax and the period for which eligibility certificate had ..... X X X X Extracts X X X X X X X X Extracts X X X X
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