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TMI Blog2010 (7) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... to a bona fide mistake of fact committed by its functionary. No infirmity in the order of the assessing officer directing reopening of the assessment of the petitioner-company for the years 2003-04 and 2004-05 and the subsequent order of reassessment dated September 12, 2006 for the year 2003-04, impugned in W.P. (C) No. 15001 of 2006. In W.P. (C) No. 15913 of 2006, as the notice of reassessment dated September 1, 2006, for the year 2004-05 is under challenge and this court by order dated January 16, 2007 had restrained the assessing officer from passing the final order of assessment, we vacate the said interim order dated December 16, 2007.Appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... dustry, as per the order of the Government of India dated December 10, 1997, submitted an application dated March 24, 1998, seeking re-classification of its industrial unit from medium scale to small-scale. The General Manager, District Industries Centre, Jagatpur, granted a fresh registration certificate dated January 13, 2000 (annexure 2), certifying the petitioner's existing industry to be a small-scale unit. The Government of India subsequently issued order dated December 24, 1999, reducing the investment limit for small-scale industrial units from Rs. 3 crores to Rs. 1 crore. Pursuant to the said order of the Government of India dated December 24, 1999, the registration certificate granted to the petitioner's industry, as a small-scale industrial unit, was cancelled on February 26, 2000, since the maximum investment limit of a small-scale industry was re-fixed at Rs. 1 crore and the petitioner's industry did come within the said limit. Accordingly, the petitioner was advised to obtain registration as a medium scale industrial unit. The Government of India issued a clarificatory letter dated March 14, 2000 (annexure 3), in which it was stated that industrial units ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party No. 4, under rule 10 of the CST (O) Rules, for the assessment year 2004-05. In the counter-affidavit filed on behalf of the Sales Tax Officer-opposite party No. 3 in W.P. (C) No. 15001 of 2006 and opposite party No. 4 in W.P. (C) No. 15913 of 2006, while reiterating the above facts, it has been stated that the petitioner's industrial unit having availed of concession under the Industrial Policy Resolution, 1996, as a medium scale industry and having not applied for change over to a small-scale industry within the prescribed period of 180 days, as provided in the order of the Government of India dated December 10, 1997, it has no right to claim exemption available to a small-scale industrial unit. It has been further stated that the low rate of tax at one per cent, for goods manufactured by the small-scale industrial units in case of inter-State sales being a concession granted to the small-scale industries in the State, the petitioner's unit being a medium scale industry, is not eligible to avail of such concessional rate of tax. Accordingly, it is stated that as the petitioner had been under-assessed for the assessment years 2003-04 and 2004-05, the assessment for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no certificate of eligibility and exemption certificate had been granted to the petitioner's industry as a small-scale unit and it had availed of sales tax exemption/incentives as a medium scale industry for a period of five years from the date of commercial production, i.e., March 17, 1997. On a perusal of the order of the Government of India dated December 10, 1997, it is seen that the Central Government considered it necessary with a view to ascertain which ancillary and small-scale industrial undertakings need supportive measures, exemption or other favourable treatment under the Industries (Development and Regulation) Act, 1951, in order to enable them to maintain their viability and strength, so as to be effective in (a) promoting in a harmonious manner the industrial economy of the country and casing the problem of unemployment and (b) securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good. Clause (1) of the said order of the Government of India provided that an industrial undertaking in which the investment in fixed assets in plant and machinery does not exceed three crores, shall be cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner's industry as a small-scale unit and advised the petitioner to obtain registration as a medium scale unit. On May 8, 2000, the said authority granted re-registration to the petitioner's industry as a small-scale unit. Apparently, the registration of the petitioner's industry as a small-scale unit by the General Manager, DIC, Jagatpur, is a mistake of fact, inasmuch as, the petitioner had not applied for change of status from existing medium scale to small-scale within the prescribed period of 180 days, as stipulated in the Government of India order dated December 10, 1997 and registered as such. Moreover, after having opted by submitting application in plain paper to be registered as a small-scale unit, no eligibility certificate has been granted to the petitioner for availing of sales tax concession. Hence, the petitioner's industry having been wrongly treated as a smallscale unit under a bona fide mistake of fact, it cannot be permitted to take undue advantage of the same and make a legitimate claim for availing of the concessional rate of Central sales tax at one per cent, applicable to small-scale industries. Even otherwise, the State cannot be made to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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