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TMI Blog2009 (9) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... for the month of September to December, 2000, proposing to disallow the claim of the exemption on the ground that the exemption was made available in view of notification dated March 30, 1999. In response to the said notice, the respondent-company, through their letter dated February 12, 2001, filed its objection and claimed exemption under notification dated July 21, 2000. Thereafter, no order of provisional assessment was made, but, however the assessing authority chose to issue pre-assessment notice dated August 13, 2000 proposing to disallow the claim for exemption for the year 2000-01, which was confirmed by assessment order dated October 1, 2000. Thereby, the authority did not choose to apply its mind with regard to exemption to which one or other industry was entitled under G.O. Ms. No. 36/2000/F2 dated July 21, 2000. Appeal dismissed. - W.A. Nos. 529,530, 531 of 2005 - - - Dated:- 17-9-2009 - MUKHOPADHAYA S.J. AND DHANAPALAN V., JJ. The judgment of the court was delivered by S. J. MUKHOPADHAYA J. As all the writ appeals have been preferred against common order, they were heard together and disposed of by this common judgment. The appellants (respondents to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d start production within two years from the date of issue of the notification withdrawing the incentive. It is only in this background, by Notification No. 36/2000/F2 dated July 21, 2000, the Government of Pondicherry discontinued the exemption. The exemption from this was to the extent that the existing incentive of exemption is to those new industries, which is in pipeline and fulfils the following conditions: (1) The industry should have been registered with the Industries Department of the Government of Pondicherry Central Government. (2) The industry should own land or building or should have acquired the land or building either by purchase or on lease or on rent. (3) The industry should have applied for loan for the project to any bank or financial institution or should have own resources. It was submitted that further exemption for three specific categories, viz., (i) IMFL, (ii) gensets, (iii) soaps were already taken away and, therefore, they do not come within the scheme of exemption. In that view of the matter, the findings in the impugned order in paras 21 and 22 are not sustainable at all. In fact, there is no specific finding as to how the company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under G.O. Ms. 36/2000/F2 dated July 21, 2000. The learned counsel appearing on behalf of the company while referred to one or other policy decision, mainly placed reliance on G.O. Ms. No. 36/ 2000/F2 dated July 21, 2000 submitted that the company, which is a pipeline industry was also entitled for exemption, though it is dealing with IMFL. Reliance was placed on the letter of the Commercial Taxes Department, wherein it was observed that IMFL industries are also eligible for exemption as per Notification G.O. Ms. No.36/2000/F2 dated July 21, 2000. It was also brought to the notice of the court that another manufacturer of IMFL has not been denied the benefit. Further, according to the respondent, the issue of alternative remedy by way of appeal, as raised by the appellant, cannot be pleaded at this stage. So far as the parent notification and amending notifications are concerned, it was contended that the amending notification is linked to the parent notification. Only if the parent notification, in totality, is withdrawn or discontinued, the amending notification to the parent notification can be held to be ipso facto discontinued. However, when a notification is issued, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d notifications: Provided, further that this concession shall not be applicable to Indian made foreign liquor sold at less than Rs. 600 per case. The fourth notification was issued vide G.O. Ms. No. 36/2000/F2 dated July 21, 2000. This notification is important for the determination of the present case as on the basis of this notification, while Government of Pondicherry claims that the company is not entitled for exemption, the company, per contra, claims such exemption on the basis of the said G.O. Ms. No. 36/2000/F2 dated July 21, 2000, as quoted hereunder: GOVERNMENT OF PONDICHERRY Finance Department Notification G.O. Ms. No. 36/2000/F2, dated 21st July, 2000 In exercise of the powers conferred by sub-sections (1), (2) and (3) of section 19 of the Pondicherry General Sales Tax Act, 1967 (Act No. 6 of 1967), the Lieutenant Governor, Pondicherry, having been satisfied that it is necessary so to do in the public interest, is pleased to discontinue the exemptions made in notification issued in G.O. Ms. No. 15/74/Fin (CT), dated June 25, 1974, and G.O. Ms. No. 164/ 86/F.6, dated September 29, 1986: Provided that the exemption made in respect of industries which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... granted on the same day, i.e., August 2, 2000. The company was registered as a dealer on January 3, 2000 under the Pondicherry General Sales Tax Act, 1967, followed by grant of permanent small-scale industry registration certificate on December 19, 2000. It has changed hands. From the aforesaid fact it will be evident that the respondent-company is an industry in the pipeline and, thereby, it is entitled for incentive of exemption from levy of sales tax on the turnover from the sale of goods manufactured by the said industry for a period specified from the date of commencement of production. It has been registered with the Industries Department and fulfils the other conditions. It has not been disputed by the appellant, Government of Pondicherry, that the Commercial Taxes Department, by its letter dated September 19, 2000, held that IMFL units would also be eligible, if they satisfy the other conditions specified in G.O. Ms. No. 36/2000/F2 dated July 21, 2000. It has also been seen that such exemptions having been given to other IMFL companies. Apart from the fact that the company has been provided with no objection certificate for construction of the distillery, registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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