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TMI Blog2006 (3) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... nt-Commercial Tax Officer (Intelligence) VIII, South Zone, Bangalore, vide annexure C . It is submitted by Sri T. Suryanarayana, learned counsel appearing on behalf of the petitioner, that the notification vide annexure B denying certain exemptions, incentives and concessions runs contrary to the New Industrial Policy, 2001 of the State Government and consequently, that portion of the notification by which the words excluding petroleum products like petrol, diesel, furnace oil, naptha and LSHS used as consumables or captive power generation units are mentioned, is bad in the eye of law. In support of his contentions, he relies upon the judgment of the apex court in the case of State of Bihar v. Suprabhat Steel Ltd. [1999] 112 STC 258, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se 10.4(i)(b). Consequently, the High Court was fully justified in striking down that part of the notification which is repugnant to sub-clause (b) of clause 10.4(i) and we do not find any error committed by the High Court in striking down the said notification. We are not persuaded to accept the contention of Mr. Dwivedi that it would be open for the Government to issue a notification in exercise of power under section 7 of the Bihar Finance Act, which may override the incentive policy itself. In our considered opinion the expression 'such conditions and restrictions as it may impose' in subsection (3) of section 7 of the Bihar Finance Act will not authorise the State Government to negate the incentives and benefits which any indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a Government Resolution, then the notification must be held to be bad to that extent. Clause 4 of the New Industrial Policy, 2001 reads thus: 4. Special concessions for export. The following benefits will be extended to Export Oriented Units (EOU). (1) 100 per cent export oriented units (EOUs). A. Investment subsidy as indicated in para 1(a) above. B. Exemption from power cut. C. Exemption from payment of entry tax and sales tax payable on purchase of raw materials, components, packing materials, consumable, capital goods, spares, material handling equipment, intermediates, semi-finished goods and sub-assemblies from a registered dealer. While the entry tax exemption will be available for the items procured from with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wer generation units), machinery and equipment, spares, material handling equipment, intermediates, semi-finished goods and sub-assemblies brought into a local area for use in the manufacture of goods, subject to following restrictions and conditions: . . . (underlining Here italicized. by me) The combined reading of New Industrial Policy, 2001 and the notification dated November 30, 2001 would make it clear that the notification dated November 30, 2001 is repugnant to the industrial policy to the extent of withholding of exemption of petroleum products like petrol, diesel, furnace oil, naptha and LSHS used as consumables. Thus, the notification dated November 30, 2001 vide annexure B shall have to be held bad to the extent of withh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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