9911796707
TMI Blog2006 (12) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... sales tax waiver. The facts are as follows: The petitioner is a registered firm carrying on the business in the manufacture of polypropelene woven sacks. Plot No. C-78 of an extent of 2.01 acres in the Sipcot Industrial Complex, Tuticorin, was originally allotted to M/s. Tuticorin Oxygen (Pvt.) Limited. The said company had put up a partially completed industrial shed in the land. It appears that the property has been repossessed by the SIPCOT from M/s. Tuticorin Oxygen Pvt. Ltd., along with partially completed industrial shed and it was allotted to the petitioner. As such the land and partially completed shed has been handed over to the petitioner on June 14, 1996. After allotment in favour of the petitioner, the petitioner put up building to the cost of Rs. 10,29,600, purchased plant and machinery for the value of Rs. 45,00,000 apart from other fixed assets in a sum of Rs. 90,000. Thus, the petitioner has invested a sum of Rs. 72,23,011 and started commercial production on December 13, 1996. Thereupon, the petitioner applied to the respondents for capital subsidy under G.O. Ms. No. 500 dated May 14, 1990. That request has been rejected on the ground that the petitioner is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Government agencies including Madras Export Processing Zone, Madras Metropolitan Development Authority, the scheme of interestfree sales tax loan/deferral ordered in the Government Order first, third and fourth read above is modified as follows: (i) For the existing units undertaking expansion or diversification, deferral of sales tax will be given for nine years and the total amount thus given shall not exceed 80 per cent of the additional investment made in fixed assets. (ii) For the new units, the total amount of deferral of sales tax will be given for nine years to the full extent of the total investment made in fixed assets. (b) The interest-free sales tax deferral scheme is extended to the expansion (part -I) as well as to the starting of new industries (part-II) in the other areas also where this scheme was not in vogue hitherto. The deferral of sales tax for the industries in these areas will be for five years subject to a minimum of 60 per cent of the total investment made in fixed assets in the case of new industries and 50 per cent of the additional investment in fixed assets made in the case of expansion/diversification of the existing industries. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax payable for the year will be deferred/waived within the overall ceiling for which the eligibility certificate is issued by the authority. The deferred instalments shall be payable by the assessee-units after the completion of the period of deferral together with the sales tax of the current year, without any interest thereon. In case the unit avails the complete deferral/waiver benefit before the completion of specified deferment period of 5 years or 9 years, as the case may be, the unit has to pay the normal sales tax immediately after the date of full availment of eligible deferral amount. The assessee of the unit for which the sales tax has been waived will start paying the current sales tax dues after the completion of the waiver period or immediately after the full availment of eligible waiver amount, whichever is earlier. However the deferred amount of sales tax for 5 years or 9 years, as the case may be, has to be paid after the completion of the deferral period along with the current dues, i.e., in the case of deferral of 9 years the amount deferred in the first year being payable along with the sales tax due in the 10th year, the amount deferred in the second year being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent wanted to correct the industrial regional imbalance in the State and, therefore, wanted to give 'further' incentives to attract more industries in the industrially most backward taluks and, therefore, in clause (3) of G.O. Ms. No. 500 a general term 'new industries to be set up' is used. Clause (3) of G.O. Ms. No. 500 reads as under: '3. The Government direct that the new industries to be set up in the 30 most backward taluks covered in para 2 above and also in the three industrial complexes of State Industries Promotion Corporation of Tamil Nadu at Pudukkottai, Cuddalore and Manamadurai be eligible apart from other existing concessions, for full waiver of sales tax dues for a period of five years up to a ceiling of the total investment made in fixed assets. Existing industries in the most backward taluks and in the three State Industries Promotion Corporation of Tamil Nadu (SIPCOT) complexes, undertaking expansion/diversification are also eligible for full waiver of sales tax dues for a period of five years subject to a ceiling of the total investment made in fixed assets under expansion/diversification.' Therefore, the intention of the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X
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