RUMA PAL, J. - (1.) A scheme was framed by the first appellant granting exemption to industrial units from payment of sales tax on intra-state and inter-state sale of goods and by-products manufactured within the State of Rajasthan. By a subsequent notification the extent of the percentage of exemption available to sick industries was sought to be corrected. The disputes in these appeals relate to the interpretation of the scheme and the effect of the corrigendum.
(2.) THE scheme was part of the New 4th Industrial Policy of the State. THE Policy stated that the object of the scheme was to make Rajasthan "a most favoured destination for industries" and to encourage the setting up of industries in the State. THE policy describes the nature of the exemptions which were sought to be granted to the different kinds of industries with exemption/deferment incentives for 11 years in respect of some industries and 14 years for others. A greater incentive was granted to industries being set up in the five industrial growth centres in the State. THE incentives available during the first year were to be gradually tapered off to a particular percentage of the fixed capital investment at different rates in respect of some industries. However, in respect of cement industries the percentage of exemption proposed was at a flat rate of 25% for 11 years. According to the policy the scheme would also give benefits for the first time to sick units. THE sick units were classified into two categories as follows: (1) "Those units which have not availed of any benefits in the past will get full benefits at par with a new unit. (2) Those units which have availed of sales tax benefits in the past will get ST benefit on a tapering basis up to 11 years (maximum 80% and minimum 0% exemption/deferment on a tapering basis)". Pursuant to this Policy the Rajasthan Sales Tax/Central Sales Tax Exemption Scheme for Industries, 1998 (referred to as 'the scheme') was framed and notified in exercise of the powers conferred on the State Government by section 15 of the Rajasthan Sales Tax Act, 1994 (referred to as "RST Act") and by sub-section (5) of Section 8 of the Central Sales Tax Act, 1956 (referred to as 'the CST Act"), The scheme came into force from 1st April 1998. Clause 1-(b) of the scheme envisages that "an industrial unit which commences commercial production during the operative period of this scheme, shall be entitled to claim benefits under this scheme." Clause 3(a) provides that the scheme shall be applicable to: (i) the new industrial units; (ii) the industrial units going for expansion; (iii) the industrial units launching diversification; and (iv) the sick industrial units A "New Industrial Unit" has been defined in clause 2(k) as :- (i) "New Industrial Unit" means an industrial unit which commences commercial production during the operative period of this Scheme including a unit set up on the site of an existing industrial unit by making separately identifiable capital investment; subject however, that where an industrial unit manufacturing the same product is established on the site of an existing unit, the benefit permissible for a new unit shall be available to it only on the production in excess of 80% of the installed capacity of the existing unit. (ii) "New Industrial Unit" shall also include a sick unit: (a) which has not availed of any benefits of exemption from tax or deferment of tax; (b) which has been appraised by financial institution and appropriate rehabilitation plan has been formulated; and (c) which has been purchased by a new management other than by way of collusive transfer and such management has made additional fixed capital investment not less than 25% of the depreciated value of the assets of such unit".
(3.) THE respondents in these appeals viz M/s. J.K. Udyog and J.K. Synthetics Ltd. were writ petitioners before the High Court of Rajasthan and are companies which manufacture cement in different units within the State of Rajasthan. THE respondent-companies in these appeals are undisputedly 'sick'. The description of the type of units, extent of the percentage of exemption from tax liability, the maximum exemption permissible under the scheme and the maximum time limit for availing the exemption under the scheme have been set out in Annexure 'B' to the Scheme.;