DEVI DASS GOPAL KRISHEN LTD Vs. STATE OF J&K
LAWS(J&K)-1999-2-18
HIGH COURT OF JAMMU AND KASHMIR
Decided on February 04,1999

Devi Dass Gopal Krishen Ltd Appellant
VERSUS
STATE OF JANDK Respondents

JUDGEMENT

BHAWANI SINGH, J. - (1.) THIS Letters Patent Appeal is directed against Judgment of Single Judge dated September 10, 1997 in OWP No. 853/1995, Before adverting to the controversy involved for consideration and determination in this case, narration of material facts may be made.
(2.) THE Appellant -Company is registered under Indian Companies Act, 1956. it is carrying on the business of manufacturing and sale of P mark mustard oil, units located at Moga (Punjab) and Bahadurgarh (Haryana), for the past 60 years with good -will and reputation, states the Managing Director.
(3.) IN 1962, the Jammu and Kashmir General Sales Tax Act, 1962 was enacted. Section 4(1) thereof empowers the State Government to impose tax on goods. State Government issued notifications prescribing rates of tax on various kinds of goods. By SRO -80/1982 dated March 12, 1982, Sales Tax at the rate of 1% was levied on edible oil produced by both outside and local manufacturers. Thereafter, by SRO -135/1989 dated March 29, 1989, the rate of tax on this item was enhanced to 4% for both the categories of manufacturers of edible oil. Thereafter, another notification SRO - 93/1991 dated March 7, 1991 has been issued under Section 5 of the Sales Tax Act granting exemption against payment of Sales Tax to small scale units of J&K State producing edible oil. Since entire edible oil industry in Jammu and Kashmir comprised of small scale units, all the industrial units of J&K got exempted from paying Sales Tax under this notification. Thereafter, SRO -124/1994 dated June 27, 1994 was issued amending SRO -135/1989 increasing rate of Sales Tax. The result was that industrial units of J&K remained exempted under SRO -93/1991, while outside manufacturers, who had been paying Sales Tax at the rate of 4% under SRO 35/1989 were liable to pay increased rate of Sales Tax at 8%. Thus, subjecting industrial units producing edible oil out side the state to hostile discrimination vis -a -vis industrial units of Jammu and Kashmir.;


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