Decided on February 20,2018

Jericho Detergent Pvt. Limited Appellant
UNION OF INDIA Respondents


Achintya Malla Bujor Barua, J. - (1.) Heard Mr. K. Goswami, learned counsel for the petitioner, Dr. B Ahmed, learned Standing Counsel for the Industries Department of the Government of Assam and Mr. B. Choudhury, learned counsel appearing for the Finance and Taxation Department.
(2.) The petitioner is engaged in the trade of manufacturing detergent item and has set up their industry within the State of Assam. Subsequently, with an intention to claim the benefits under the North East IndustrialInvestment Promotion Policy (NEIIP), 2007 (in short NEIIP) as notified by the Governor of Assam by notification dated 105.2009, certain expansion activities were undertaken. Under the NEIIP, 2007, substantial expansion means an increase in the value of fixed capital investment in plant and machinery of an existing unit by at least 25% as well as increase of employment by at least 10% and at least 25% increase in production compared to average annual production of previous three years. Clause-7.1 of the NEIIP, 2007 provides for certain tax incentives to the extent that the eligible units, which manufacture goods in Assam, will be entitled to exemption of 99% of the tax payable under the Assam Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956. Sub-Clause (b) of Clause-4.6 provides that the new units set up on or after 01.10.2008 as well as existing units undergoing substantial expansion at the same place in the State of Assam on or after 01.10.2008 shall be eligible for incentives under 2008 Industrial Policy provided that in respect of the units undergoing substantial expansion, the fiscal incentives will be only against the additional investments made on plant and machineries.
(3.) The operational guidelines for the Industrial and Investment Policy of Assam, 2008, in Clause-4 of Chapter-2, provides that the Eligibility Certificate application should be filled in complete and submitted with all the prescribed documents to the authority concerned within six months of its commencement of commercial production/service. It is further provided that incomplete/rejected applications should be returned to the units concerned within 1(one) month of its receipt justifying the reasons for rejection. Again, clause-7 thereof provides that changes in capital investment, date of commencement of production/service after substantial expansion/declaring as sick unit etc should be recorded in permanent registration certificate of the unit before applying for the eligibility certificate.;

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