SHUBH TIMB STEELS PRIVATE LIMITED Vs. STATE OF HIMACHAL PRADESH
LAWS(HPH)-1997-8-16
HIGH COURT OF HIMACHAL PRADESH
Decided on August 11,1997

SHUBH TIMB STEELS PRIVATE LIMITED Appellant
VERSUS
STATE OF HIMACHAL PRADESH Respondents


Referred Judgements :-

KUNDAN LAL AHUJA AND ANOTHER V. THE STATE OF HIMACHAL PRADESH AND OTHERS [REFERRED TO]
MOTILAL PADAMPAT SUGAR MILLS COMPANY LIMITED VS. STATE OF UTTAR PRADESH [REFERRED TO]
DELHI CLOTH AND GENERAL MILLS COMPANY LIMITED VS. UNION OF INDIA [REFERRED TO]
KASINKA TRADING VS. UNION OF INDIA [REFERRED TO]
STATE OF HIMACHAL PRADESH VS. GANESH WOOD PRODUCTS [REFERRED TO]


JUDGEMENT

M.SRINIVASAN,C.J. - (1.)These three writ petitions have been remanded by the Supreme Court for fresh consideration in the light of the observations made by them and in accordance with the principles of law. Before setting out the directions, given by the Supreme Court, it will be necessary briefly to indicate the circumstances under which these petitioners have approached this Court. The facts are all similar though the dates in each case may differ. These three petitioners intended to open Small Scale Industries within the State of Himachal Pradesh taking advantage of certain incentives being announced by the State Government as would be granted to such Small Scale Industries. One such incentive was exemption from sales tax and later reduction of rates in payment of sales tax.
(2.)The petitioners entered into agreements with the Forest Department. The petitioner in C.W.P. No. 86 of 1981 entered into an agreement on 7 -1 -1977. The other two petitioners entered into agreements on 27 -9 -1977. The contents of the three agreements were all the same. The agreements were between the Governor of Himachal Pradesh through the Secretary to the Government of Himachal Pradesh, Department of Forest, Farming and Environmental Conservation, referred to as the seller on the one part and the petitioners herein referred to as the Buyer on the other part. After setting out the relevant facts in the preambles, the agreement provided in Clause 7 as follows : "7. The Buyer shall have to produce Registration Certificate under Himachal Pradesh General Sales Tax Act, 1968 (Act No. 24 of 1967). In case the Buyer fails to produce proof of his registration, he shall have to pay sales tax as applicable from time to time in Himachal Pradesh along with the instalments of the sale price. The buyer shall have to pay the sales tax on the due date of instalments as provided above irrespective of the fact whether the period of payment of any instalment is extended by the competent authority, viz. Chief Conservator of Forests or not. in case of his failure to do so, he will have to pay penalty as assessed by the Sales Tax Department. Further, the buyer shall be liable to pay such levies/taxes as may become legally payable hereinafter under any Act, Rules or Regulations."
(3.)Thereafter, the petitioners established their factories and commenced production. The petitioners in C.W.P. No. 86 of 1981 commenced production on 1 -5 -1977. The petitioners in C.W.P. No. 79 of 1981 commenced production on 1 -5 -1978. The other petitioners commenced production on 10 -3 -1979.


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