KUNDAN LAL AHUJA Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) This judgment will dispose of writ petitions Nos. 232 of 1978, 81, 85 and 129 of 1979 since a common question of law has been raised by the petitioners.

(2.) Section 42 of the Himachal Pradesh General Sales Tax Act (referred to as the Act) empowers the State Government to issue a notification exempting, amongst others, Small Scale Industries from the payment of tax under this Act on the purchase or sale of any goods subject to such conditions as may be specified by the notification. The Government of Himachal Pradesh issued notification (Annexure PA) dated 2"?th May, 1974 granting exemption from payment of sale/purchase tax to the Small* Scale Industries with effect from 12th April, 1971. The relevant conditions laid down in the notification were these; "(1) that there shall not be charged sale/purchase tax from the Small Scale Industries which were in existence and registered with the Industries Department, as such on 12 -4 -1971, for a period of three years from that date ; (2) that the exemption from payment of sale/purchase tax in the case of Small Scale Industries which came into being and are registered with the Industries Department as such after 12 4 -1971, would be applicable for a period of 5 years commencing from the date of their coming into existence ; (3) that the Small Scale Industries registered as such with the Industries Department, who deal partly in the manufacture of goods and partly otherwise, would be entitled to avail the sale/purchase tax holiday in respect of such goods as are purchased by them for the purchase of manufacture for sale in Himachal Pradesh ; (4) that no holiday from Central Sales Tax would be available to Small Scale Industries under the Central Sales Tax Act, 1956 ; X X X X X (7) that the holiday from the sale/purchase tax will be subject to the filing of certificate of genuineness with the Assessing Authority concerned by 30th April, each year; granted by the Director of Industries, Himachal Pradesh under his signatures." It may be noticed that conditions Nos. 5 and 6 were deleted by a notification dated 5th April, 1976.

(3.) The Government also issued various brochures inviting persons to set up industries in Himachal Pradesh and highlighting the incentives to the enterpreneures. The relevant para of one of the brochures may be reproduced with advantage: INCENTIVES" "Realising the importance of industrialisation the State Government is now pursuing a dynamic policy of industrialisation and is offering a large number of attractive incentives to the prospective enterpreneure. The Central Government has also offered a number of concessions for backward regions so as to remove the regional imbalances prevailing in the country. Setting up of industries, therefore, in Himachal Pradesh today, is a very attractive proposition. The following are the various incentives, concessions and facilities that are available to the enterpreneures; - Central Government Scheme. 1. X X X X Incentives provided by the State Govt. to new/existing industries in H. P. to 8 x x x