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TMI Blog2015 (9) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... n till the Department issued the notification. No doubt, the statutory notification issued by the Excise and Taxation Department under Section 8(5)(b) of the Act on 18.06.2009 has stated that the eligible units will be entitled to the concession with immediate effect. Merely because such an expression has been used, it cannot be held that the State Government can levy the tax against its own policy. As we have already clarified, it is not the introduction of a new policy but an extension of the benefits under the extended policy. - appellant shall be entitled to the concessional rate of CST @ 1 per cent with effect from 01.04.2009 till 31.03.2013 until it is duly varied by the State Government. - Decided in favor of assessee. - Civil Appeal No. 6838 of 2015 (Arising from S.L.P. (C) No. 26751/2013) - - - Dated:- 3-9-2015 - Anil R. Dave, Kurian Joseph And Adarsh Kumar Goel, JJ. JUDGMENT Kurian, J. Leave granted. 2. Whether the appellant is liable to pay Central Sales Tax (hereinafter referred to as CST ) @ 2 per cent on the inter-State sales for the period 01.04.2009 to 17.06.2009 or @ 1 per cent in view of the Industrial Policy of the State, is the disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustrial enterprises of the State of Himachal Pradesh prepared on 19.05.2009, the issue whether the concession should be extended beyond 31.03.2009 for some more time, was specifically addressed. To quote the relevant discussion: 3. The State Government has been vigorously pursuing at various levels with Government of India the case for the extension of the Special Package for our State announced in January 2013 till at least March 2013 as it expires in March 2010. In the absence of any decision or any positive indications so far, it is imperative that the State Government also at its own level considers taking such initiatives by way of which Industrial Enterprises being set up in our State could be provided some basic attraction in the form of tax incentives and a facilitating environment. Availability of such incentives in the neighbouring State such as Uttarakhand where the incentive of 1% CST is available to the industrial units till March, 2014 renders our State uncompetitive and Unattractive to industrial investors. During the year 2007-08 the Industrial Enterprises of the Ste had contributed a sum of ₹ 113.47 Crores to State exchequer through 1% CST. In case th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The relevant portion of the Notification reads as follows: 2. Now, therefore, in exercise of the powers conferred by clause (b) of sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956), the Governor of Himachal Pradesh is pleased to direct that in respect of the sale in the courses of inter-State trade or commerce of the goods (other than those manufactured by the breweries, distilleries, nonfruit/vegetable based wineries and bottling plants (both of country liquor and Indian made foreign liquor) manufactured by the dealers running any existing industrial unit or new industrial unit (other than those new industrial units which are located in the tax free industrial zone) in the State of Himachal Pradesh, and are registered as dealer with Excise and Taxation Department, Himachal Pradesh, the tax levied under sub-section (1) of section 8 of the said Act shall be calculated and payable at the rate of 1% of the taxable turnover of such goods with immediate effect for the period ending 31.03.2013. (Emphasis supplied) 9. The whole thrust of the contention advanced by the State is that since the notification under the Act providing fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the eligible units will be entitled to the concession with immediate effect. Merely because such an expression has been used, it cannot be held that the State Government can levy the tax against its own policy. The State Government is bound by the policy decision taken by the Council of Ministers and duly notified by the Department concerned, viz., Department of Industries. 11. That apart, it appears, the Excise and Taxation Department itself has not actually intended the notification to take effect from 18.06.2009. The definition given to the new and the existing industrial units in the Notification dated 18.06.2009 would indicate so. To quote: Explanation I:- For the purposes of this notification,- (i) new industrial unit means an industrial unit located in Himachal Pradesh which commenced/commences production on or after 31.012.2004, but will not include any industrial unit which is formed as a result of reestablishment, mere change of ownership, change in the constitution, re-structuring or revival of an existing industrial unit; (ii) existing industrial unit means an industrial unit which commenced production before 31.12.2004; 12. Even oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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