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TMI Blog2005 (8) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... trial units under medium and large scale industries and also small-scale industrial units for a period of seven years from the date of commencement of commercial production in respect of tax payable under the Kerala General Sales Tax Act on the turnover of sale of goods manufactured and sold within the State. The company had started commercial production on December 31, 1996. Petitioner industry was also entitled to get the benefit of the said Government Order. On their application the Kerala State Industrial Development Corporation had issued eligibility certificate for sales tax exemption equal to 100 per cent of the fixed capital investment. On the basis of the eligibility certificate the Deputy Commissioner (General), Commercial Taxes, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment have no power under section 10 of the KGST Act, 1963 to extend period of sales tax exemption. Counsel also submitted section 10(3) of the Act empowers the Government to cancel or vary any notification issued under sub-section (1) thereof by notification in the Gazette. In order to establish the said contention counsel made reference to Notification G. O. (P) No.16/03/TD dated January 29, 2003 granting extension of the period of sales tax exemption to the industries engaged in the manufacture of cement using fly ash for a further period of two years. Reference was also made to the benefit of extension of exemption granted to M/s. Cochin Cements Ltd., on the basis of the Government Notification. Counsel also referred to the orders issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner. The Government issued the notification under section 10 is on the basis of the then Industrial Policy. Whatever benefit petitioner could have availed of during the said period could have been enjoyed by the petitioner. No legal right is conferred on the petitioner to insist that Government should issue a statutory notification so as to extend the period beyond seven years. No duty is cast on the Government to issue such a notification and the petitioner has no corresponding right. Apex court in State of Jharkhand v. Ambay Cements [2005] 139 STC 74; [2005] 1 SCC 368 held that court cannot direct the grant of exemption under the industrial policy ignoring the eligibility conditions prescribed therein and in exemption notifications a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government have issued S.R.O. No. 78/ 2003. Explanatory Note to the notification reads as follows: "As per Notification issued in G.O. (P) No. 8396/TD, dated 30-41996, sales tax exemption was given to industrial units manufacturing cement using fly ash generated in the State as raw material for 7 years from the date of commencement of commercial production, subject to the condition that the total quantum of exemption shall not exceed 500 per cent of the fixed capital investment of the unit. Now, the said industrial units have requested Government to extend the period of exemption from 7 years to 9 years, since the industry could not avail the full quantum of incentive within the stipulated period, due to various reasons unfavourable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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