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TMI Blog2022 (11) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the Department of Industries in the year 1966 and, therefore, Clause-3.11 reproduced herein above was not in any way applicable - From a reading of Clause-3, it is abundantly clear that additional toll on components, plant and machinery, building material and other equipments imported from outside the State for construction of factory is exempted for a period of five years from the date of registration of the Units in Small, Medium or Large scale sector (including prestigious units). There is no denying the fact that as per the Industrial Policy, 2004, particularly Clause 3.14, the petitioner is entitled to toll tax exemption but Clause 3.14 is required to be read subject to SRO 22 of 2004. Levy of toll is regulated by the Act of legislation known as the Jammu and Kashmir Levy of Tolls Act, Samvat 1995. Section 3 of the Act is a charging Section and provides that levy of toll on various items brought in or taken out of the established check posts under the Act. Section 5 of the Act confers upon the Government power to grant exemption from payment of toll levied under the Act - with a view to give effect to the promises held out to the existing and prospective entrepreneurs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew Industrial Policy, 2004 and package of incentives for development of industries in Jammu Kashmir issued by respondent No.1 vide Government Order No.21-Ind of 2004 dated 27.01.2004 read with SRO 22 of 2004 dated 31.01.2004 issued by the Government in exercise of the powers conferred by Section 5 of the Jammu and Kashmir Levy of Tolls Act, Samvat 1995 [ the Act ]. When the claim of the petitioner for exemption from payment of additional toll on the plant and machinery imported by it for undertaking substantial expansion of the mill was not accepted, the petitioner filed OWP No.161/2007 in this Court claiming, inter alia, a direction to the respondents to allow the toll tax exemption to the petitioner-Mill for its 9 th expansion programme in terms of SRO 22 of 2004 read with Government Order No.432-I D of 1998 dated 02.12.1998. The writ petition was disposed of by this Court vide order and judgment dated 12.02.2013 and a direction was issued to the respondents to examine the case of the petitioner in light of the request already made by the petitioner and make a decision while keeping in view order dated 5th March, 2007. On review petition moved by the petitioner, the order afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported from outside the State for undertaking its 9th substantial expansion programme. It is further submitted that it was only in the year 2008, SRO 22 dated 31.01.2004 was amended vide SRO 85 of 2008 dated 24.03.2008 and for the first time exemption from payment of additional toll chargeable on capital goods to be imported by the existing industrial units for substantial capacity expansion for a period of one year w.e.f. 01.04.2008 to 31.03.2009 was provided. It is further submitted by the respondents that issuance of SRO 85 of 2008 giving benefit of exemption only for a period of one year i.e. financial year 2008-09 makes it abundantly clear that prior to 24th March, 2008 i.e. the date of issuance of SRO 85 of 2008, such benefit was not envisaged or provided under SRO 22 of 2004 dated 31.01.2004. It is, thus, submitted that the Deputy Excise Commissioner rightly considered the matter in proper perspective and rejected the claim of the petitioner giving cogent reasons in support of its decision. The impugned order of consideration, therefore, is perfectly valid and does not call for any interference by this Court. 5. Having heard learned counsel for the parties and perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eading of Clause 3.11, it is clearly evident that the Industrial Policy envisages grant of exemption from payment of additional toll on components, plant and machinery and other equipments procured from outstate the State for building factory for a period of five years from the date of registration of the Unit as SSI, Medium or Large. Indisputably, the petitioner-Unit was registered with the Department of Industries in the year 1966 and, therefore, Clause-3.11 reproduced herein above was not in any way applicable. At this juncture, it is necessary to make a reference to SRO 22 of 2004 dated 31.01.2004. Needless to say that the Government while promulgating Industrial Policy may declare and pronounce a package of incentives, which may include exemption from payment of various taxes including toll. However, with a view to give effect to these promises and declarations made in the Industrial Policy, necessary statutory notifications are required to be issued by the Government under the relevant legislation. In this way and with a view to give effect to the promise of grant of exemption from payment of additional toll, the Government in the exercise of powers conferred by Section 5 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. From a plain reading of Clause 3.14, it comes out that prestigious units like the petitioner-Unit have been held entitled to full exemption from payment of GST and additional toll tax until 31.03.2015 or until such amount of exemption reaches the level of 150% of capital investment in the project whichever occurs earlier. 11. There is no denying the fact that as per the Industrial Policy, 2004, particularly Clause 3.14, the petitioner is entitled to toll tax exemption but Clause 3.14 is required to be read subject to SRO 22 of 2004. Levy of toll is regulated by the Act of legislation known as the Jammu and Kashmir Levy of Tolls Act, Samvat 1995. Section 3 of the Act is a charging Section and provides that levy of toll on various items brought in or taken out of the established check posts under the Act. Section 5 of the Act confers upon the Government power to grant exemption from payment of toll levied under the Act. In the exercise of this power, the Government of Jammu Kashmir has been coming up with requisite notifications exempting toll levied under the Act. As is stated above, with a view to give effect to the promises held out to the existing and prospective entrepre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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