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TMI Blog2006 (11) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... strial policy by a notification dated October 12, 1982 (for short, notification) wherein the State Government provided exemption from sales tax and octroi, concession in water and power tariff, transport and capital investment subsidy and various tax concessions. The scheme of exemption of sales tax, etc., was for a period of five years on sale of raw materials and finished goods produced by the newly established industries. To give effect to the aforesaid scheme, the State of Assam passed an Act, namely, the Assam Industries (Sales Tax Concessions) Act, 1987. The petitioner/respondent claims that it is entitled to get exemption from sales tax for the goods produced by it under the State Act as well as the Central Sales Tax Act, 1956 (for short, the Central Act ) under the provisions of section 3B of the State Act read with notification and section 8(2A) of the Central Act. Accordingly, the petitioner submitted its return for the assessment period of 1986-88 before the Superintendent of Taxes, Guwahati, i.e., the assessing authority (for short, the A.O. ). The A.O. after proper assessment determined the tax liability of the petitioner/respondent for the assessment period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts/appellants preferred the present writ appeal. The moot questions which arise for decision in this writ appeal are whether the petitioner/respondent is entitled to be exempted from the sales tax under notification read with the provisions of section 3B of the State Act and section 8(2A) of the Central Act and in what circumstances, the power of revision under section 31(1) of the State Act can be exercised; and whether the judgment of the learned single Judge is good in law or not. Mr. Choudhury, learned Senior Counsel for respondents/appellants, supporting the order of the Assistant Commissioner of Taxes submits that the tax authority (for short, Revenue ) has the right to set aside and/or cancel the order of the assessing authority as the assessing authority committed error providing the benefit of exemption to the petitioner/ respondent, even when it is not entitled to the said benefit of exemption under section 8(2A) of the Central Act as the notification issued by the State providing exemption of sales tax is conditional, not general in nature. Mr. Choudhury also submits that as the scheme/notification issued by the State is a conditional one, the same does not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 SCC 683 as also the earlier law of this court and the various other High Courts. The orders of assessment could not be said to be erroneous and prejudicial to the interest of the Revenue. We are in respectful agreement with the view expressed by the Punjab and Haryana High Court in State of Haryana v. Free Wheels (India) Ltd. [1997] 107 STC 332 that simply because the law has been changed or earlier law laid down has been reversed, that would entitle the revisional authority to reopen the earlier assessments. The learned single Judge has not gone into this aspect of the matter. According to Mr. Choudhury, learned Senior Counsel, the aforesaid cases are not the law on the field at the time of order of assessment as well as review of the order of the Assistant Commissioner. According to him, the law on the date was the case of Indian Aluminium Cables Ltd. v. State of Haryana [1976] 38 STC 108 (SC); [1976] 4 SCC 27, wherein it has been held that the Explanation to section 8(2A) of the Central Act takes away the exemption where it is not general in nature and has been granted in specified circumstances or under specified conditions. He also tried to make out a distinction b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent submits that the case in hand is fully covered by the judgment of this court in Muli Bash Hasta Silpa Samabaya Society Ltd. [1992] 1 GLR 46 and the case of Pine Chemicals Ltd. v. Assessing Authority [1992] 85 STC 432 (SC); [1992] 2 SCC 683 as those cases were the law of the State and land, respectively. Dr. Saraf also submitted that the Assistant Commissioner wrongly exercised his jurisdiction under section 31(1) of the State Act, as there was no wrong in the decision of the assessing officer as the assessment order was not prejudicial to the interest of the Revenue. According to him, satisfaction must be done which is objectively justifiable and cannot be ipso dixit of the Commissioner. He further submits that power under section 31(1) must be exercised on the basis of the material available at the time the power is exercised. In support of his contention, Dr. Saraf submitted a decision of the apex court in Commissioner of Income-tax, Bhopal v. G.M. Mittal Stainless Steel P. Ltd. [2003] 263 ITR 255; [2003] 11 SCC 441, wherein it was held: . . . Given the fact that the decision of the jurisdictional High Court was operative at the material time, the Assessing Officer c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, and whether it is there in the notification or not it is immaterial. For better appreciation, section 3B of the State Act is quoted hereunder: 3B. Exemption for new industrial units. Notwithstanding anything contained in this Act the State Government may, by notification in the Official Gazette and subject to such conditions as may be specified therein, direct that no dealer shall be liable to pay tax under this Act in respect of sale of such goods produced by him in any such new industrial unit as may be specified in the notification for a period of five years from the date of commencement of production in such new industrial unit: Provided that exemption under this section shall not be granted in respect of any sale where the dealer has collected any amount by way of sales tax in any form or manner in respect of such sale. The benefit provided by the provisions of section 3B of the State Act to the dealers, the newly established industries, like the writ petitioner/respondent for the goods produced by it was again confirmed by the notification/ scheme relating to exemption. Hence it cannot be said that the notification issued by the State is conditional but genera ..... X X X X Extracts X X X X X X X X Extracts X X X X
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