9911796707
TMI Blog2006 (8) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Policy notified under Notification No. CI-386/86, dated December 25, 1986. This was followed by the Industrial Policy, 1991, circulated by Notification No. CT/154/90/279, dated April 6, 1991 and CT/154/90/242, dated July 1, 1992. In Part III thereof, within which the incentives extended, sales tax exemption was accorded to the new industrial units set up on or after April 1, 1991 as well as to existing units undertaking expansion, modernisation or diversification at the same location or at any other place in the State. The policy, inter alia, clarified that the incentives thereunder, could not be claimed until an eligibility certificate was issued by the implementing agency and the unit concerned satisfied the conditions of eligibility therefor. Subsequent thereto, the Government of Assam, in exercise of its powers under section 9(4) read with clause (f) of section 74(3) of the Assam General Sales Tax Act, 1993 (hereinafter referred to as the Act ), framed a scheme known as the Assam Industries (Sales Tax Concessions) Scheme, 1995, dated August 16, 1995 (hereinafter referred to as the Scheme ), granting relief by way of full exemption of sales tax on purchase of raw materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d jurisdiction to decide on the issue of eligibility and, therefore, the amended Scheme 1999, being antithetical to the letter and spirit of the policy, is liable to be adjudged invalid, null and void. Dr. Saraf, argued that the petitioner-company having established its new industrial unit at Beltola, Guwahati, by making huge investments, acting on the promises held out in the industrial policy and it having been granted the eligibility certificate assuring full sales tax exemption for a period of seven years up to February 4, 2003, the State-respondent was estopped in law from rolling back the said benefit under the cover of the amended scheme. The 1995 Scheme, having been framed to effectuate the promises and assurances made in the industrial policy and the petitionercompany, having altered its position by acting thereon, the respondents cannot be permitted to resile from its representation and on that count as well the 1999 Scheme, is liable to be struck down as ineffectual and inoperative in law. In support of his submissions, the learned Senior Counsel pressed into service the decision of this court in Union of India v. Shri Ganapati Rolling Mills Pvt. Ltd. [W.A. No. 208 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecognised merely by the fact that the unit concerned had fulfilled the conditions unless the eligibility certificate had been issued by the implementing agency concerned that it had complied with the norms of eligibility. The eligibility certificate was to be issued by the Udyog Sahayak of the Directorate of Industries/District Industries Centre for the SSI Sector and Assam Industrial Development Corporation for the medium and large sectors. The policy mandated that such certificate was to be issued after ensuring that all the precepts of eligibility had been fulfilled. The package of incentives offered included sales tax exemption on the purchases of raw materials and sale of finished products for a period of seven years. In exercise of powers under section 9(4) read with clause (f) of subsection (3) of section 74 of the Act, the Scheme was framed for granting relief by way of full exemption of sales tax on the purchase of raw materials within the State of Assam by the eligible industrial units situated within the State of Assam and also on the sale of the finished products, manufactured in such units in the State or in course of inter-State trade or commerce. The Scheme, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ains only to the primary facts forming the edifice of the plea of promissory estoppel. In an identical fact-situation, this court in Sunrise Biscuits Co. Ltd. [2006] 148 STC 587, while dealing with the same contentions had held that a Government perceived under the Constitution of India and the departments thereof, cannot adopt policies inconsistent with each other lest the same reveals an arbitrary manner of governance jeopardising the rule of law. It held that the Amended Scheme 1999, in the background of the notification circulating the same and published by the Department of Finance, Government of Assam, was in conflict with the Industrial Policy announced by the Department of Industries, Government of Assam. It was of the view that the exercise of power under section 9(4) read with clause (f) of sub-section (3) of section 74 of the Act, has to be compatible with the industrial policy. It was thus declared that the amended Scheme 1999, to the extent it was repugnant to the Industrial Policy 1991 and had the effect of withdrawing the facilities provided under the Scheme, was not sustainable. Consequently, the same was quashed. The plea of promissory estoppel was also uphel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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